Employment Rights Bill

Debate between Lord Howard of Lympne and Lord Leigh of Hurley

Report stage
Wednesday 16th July 2025 Lords Chamber

[Lord Leigh of Hurley (Con)]

With the greatest respect, I do not know if the noble Lord has read my amendment, but that is exactly the point. The point is that before the Bill is passed there should be consultation on these proposals, but there is no opportunity for consultation because they are implemented at Royal Assent. The Government keep telling us that there will be a consultation, but how can there possibly be consultation if the measures come in at Royal Assent?

Still, I am grateful to the noble Lord for that interruption because it proves the point. It also allows me to explain to him another payment from the Unite political fund, which he may not be aware of, to the Marx Memorial Library. I kid you not—you could not make it up. I am sure the members of Unite are thrilled to know that their hard-earned wages are going to support the Marx Memorial Library, but when the Bill becomes an Act, in a matter of months, they will no longer have the right to see that disbursement.

If that is what Unite wants to do then that is up to Unite, but surely it should not be covered up. All I am asking at this time is that proper consultation on the effects of Parts 4 and 6 should take place before this is ramrodded through on the statute book without any proper consultation and discussion with, as the Government like to call them, “relevant stakeholders”. It is on Amendment 106 that I will probably be seeking to test the opinion of the House today.

[Lord Howard of Lympne (Con)]

My Lords, I rise to support these amendments and declare my interests, as recorded in the register, as the chairman of three businesses that would undoubtedly qualify as small enterprises.

I was provoked into intervening in this debate by an observation made by the Minister when she replied to the last debate. She said to your Lordships that if an employer dismissed an employee for cause, as set out in the Bill, the employer would have nothing to worry about because the tribunal would find in their favour. Very long ago I practised in the field of employment law, and I saw at first hand the consequences—often very damaging, sometimes disastrous—for a small business of having to spend the time, trouble and expense involved in contesting a case at the tribunal, even if ultimately, it was successful. In the real world, faced with that predicament, employers often find themselves obliged to settle these cases, again at considerable expense, even if the application is completely unmeritorious and would stand scant chance of success, were it ever to come before the tribunal. That factor ought to be taken into account.

My question to the Minister, the noble Lord, Lord Leong, is this. Attention has been drawn today to the impact assessment, particularly by my noble friend Lord Sharpe of Epsom, who pointed to the increase in the number of tribunal cases that would be a consequence of the Bill. To what extent did that impact assessment take into account disputes that were not actually taken to the tribunal and were settled by the employer, who could not afford the consequences of contesting the case at the tribunal, but which would nevertheless involve substantial, damaging and sometimes disastrous consequences for the employer?