Employment Rights Bill

Debate between Lord Hunt of Wirral and Baroness Lawlor

Committee stage
Wednesday 18th June 2025 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, Amendment 279GA would introduce a sunset clause to ensure that the extension of time limits for bringing employment tribunal claims is subject to periodic parliamentary oversight. I will speak also to Amendments 330ZA, 330D and 334A in my name.

I have tabled these amendments along with my noble friend Lord Sharpe of Epsom because I believe that the state of the employment tribunal system is deeply concerning and urgently requires our attention. The proposals before us introduce a range of new rights for workers, including the critical right to claim unfair dismissal from day one of employment. We must therefore confront the uncomfortable truth that the current tribunal system is simply not prepared to handle the additional burden that this Bill will place upon it. Indeed, we have heard from a respected law firm that there is broad consensus among legal professionals that the employment tribunal system is, in its words, the “biggest problem in the legal world”.

The Government’s own impact assessment suggests that tribunal cases will increase by around 15% as a result of these reforms, yet I must ask how this figure has been calculated. Given the scale of the backlog we are currently witnessing, can this be anything other than a gross underestimate? The reality is that, by extending the time limits within which individuals can bring claims, the Bill itself may actively incentivise an increase in the volume of cases. If people have more time to bring claims, it is only natural that more claims will be submitted—claims that must then be processed by a system that is already groaning under enormous pressure.

To put this in perspective, we are currently facing, we are told, an employment tribunal backlog of nearly 50,000 cases. This backlog has now reached record levels, with preliminary hearings being scheduled as far away as April 2026, and full hearings not likely to take place until well into 2027. This must be a crisis. A delay of this magnitude means that justice for many is effectively denied. When someone has to wait years for their case to be heard, the protection that the law is supposed to afford becomes little more than an empty promise.

The causes of this backlog are clear. There is an acute shortage of employment judges. There is insufficient funding. There is inadequate administrative support. Although the Government have pledged to recruit hundreds of new judges, the practicalities of ensuring that those judges have the necessary expertise and that adequate administrative support is in place remain significant challenges.

That is why I believe these amendments are vital. They do not seek to block or delay the introduction of important workers’ rights, but they instead insist on responsible, measured implementation. It is essential that before these new rights come into force an independent and thorough assessment is conducted to evaluate the capacity and effectiveness of the tribunal system. This assessment has to address current delays, judge numbers, funding and the likely impact of this Bill’s provisions on tribunal caseloads. Moreover, the Government must commit to implementing all necessary measures identified in this assessment to reduce the backlog to a manageable level, specifically to fewer than 10,000 outstanding claims. Only then should these rights be activated.

This is all about ensuring that, when workers exercise their rights, they have access to a tribunal system capable of delivering timely, fair justice. Additionally, the amendment regarding the extension of time limits for claims rightly insists that this measure cannot come into effect until the Senior President of Tribunals certifies that the system can handle the expected increase in cases without further lengthening hearing times. Without such a safeguard, we risk compounding the problem and turning an already overstretched system into something unworkable.

There is another important point that I must raise. Nowhere in the Government’s impact assessment is there any explanation of why the option of introducing a right to claim unfair dismissal between day one and two years was not considered. If the intention is truly to balance the employment relationship and provide fair protections, why do we have to leap to day one? This decision is not just a legal technicality; it carries real risks. One such risk is the disincentive it creates for employers to hire workers who may be perceived as risky or less secure in the labour market—such as individuals with a history of mental health challenges, younger workers or others on the margins of employment —by exposing employers to potential unfair dismissal claims from the very first day. This Bill may inadvertently make it even harder for these vulnerable groups to find work in the first place. This would be a tragic and unintended consequence, compounding insecurity rather than alleviating it.

We have debated at length the potentially vast powers of the new fair work agency, its funding and the role it might play. However, many questions remain. Will the fair work agency with its undefined enforcement officers and unclear operational framework genuinely take on the enforcement of workers’ rights in a way that meaningfully reduces the burden on the already overstretched employment tribunals? Or will tribunals continue to bear the brunt of this increased workload without adequate support or relief?

I now look to the Government to provide this House, workers, businesses, law firms, and no doubt the tribunals with some assurance, clarity and ideally a timeline for the day-one rights provisions in this Bill. Perhaps this is the moment when the Minister will at last share with us, at least in draft, the implementation plan that we have heard so much about during the course of this Committee. Will she please undertake to ensure that we have the implementation plan before we reach Report?

[Baroness Lawlor (Con)]

My Lords, I support Amendment 279GA for a sunset clause. I perfectly understand the reason for extending the period in which employees can make claims, but I am quite sure it will increase the burden on the tribunals. We have heard about the very long delay, with even preliminary hearings not scheduled until April 2026, and these delays have continued for some years. People going to tribunal sometimes have to wait more than 18 months just to have the preliminary hearing. If numbers increase, as they are likely to, as my noble friend suggested, it is going to put far more pressure on the tribunals. The parliamentary oversight proposed and the sunset clause must take account of that.

Not only is there no point in law in having a claim left unsettled for years, but it is very bad for business to have the uncertainty. It is very bad for employees and their lives to be subject to such delays and uncertainties in what is going to happen to them professionally, because taking a claim to tribunal is not an easy matter. It can be expensive and full of obstacles. Not knowing how it will pan out is very worrying for people. For businesses, being subject to constant pressures of claims in a tribunal, whether they are justified or not, brings insecurity and a lack of confidence.

For these reasons, I think this moderate request for a sunset clause and coming back to Parliament for an affirmative vote are a good proposal, and I hope the Government will listen kindly to it.

Retained EU Law (Revocation and Reform) Bill

Debate between Lord Hunt of Wirral and Baroness Lawlor

Report stage
Monday 15th May 2023 Lords Chamber

[Baroness Lawlor (Con)]

My Lords, Amendment 15 is modelled on the amendment proposed earlier to Clause 1. As noble Lords who have put the amendment have said, this is to enable Parliament, not the Executive, to have the final decision. It may seem strange that I oppose that, but I do oppose it, because it makes the assumption that, in general, EU rights, powers and liabilities should remain after our withdrawal, unless a specific decision is taken in each case to remove them. On the contrary, the decision at the referendum, confirmed in 2019, was to leave the EU and leave behind its rights, powers and liabilities. Moreover, the House of Commons has voted in favour of Clauses 4(1) and 4(2).

Rather than a defence of parliamentary power, about which noble Lords have spoken very eloquently, this will or may appear a rear-guard action to retain binding links with the EU system of law, despite the decision. To repeat again what I said on the amendment to Clause 1, a direct mandate was given to the Executive to end that legal system, and it is not for this House to obstruct that mandate any longer.

[Lord Hunt of Wirral (Con)]

My Lords, I shall say a brief word. Having taken over from my noble friend Lord Hodgson of Astley Abbotts of chair of the Secondary Legislation Scrutiny Committee, I would like to support his words and the words of my colleague, the noble Baroness, Lady Randerson, with regard to Amendments 73 and 74.

As we have heard, under the European Union (Withdrawal) Act 2018 the committee was charged with an additional function—the scrutiny of what are called proposed negative instruments laid under the new sifting mechanism. The committee had 10 days to report on those proposed instruments and, to the immense credit of the committee and of the talent of the staff concerned, it rose to that considerable challenge of meeting a demanding deadline under the leadership of my noble friend. But this was not an easy matter. In its report on the Bill, the committee warned that the task of sifting would be even more challenging under this Bill because of the potential significance and complexity of the instruments to be sifted.

During the debate in Committee, in which I participated in support of my noble friend, the Minister gave us some hope that he understood the persuasiveness of the case for extending the scrutiny period. Sadly, that was not to be, and the Government in their response to the committee’s report on the Bill said that they did not accept the need for the period to be extended. This is very disappointing indeed. As I said in Committee, the committee would not expect to use the full 15 days for every proposed negative instrument—far from it. What is being asked for is an extension of the deadline in recognition of the fact that the Bill has the potential for generating more complex and far-reaching policy changes through instruments subject to the sifting mechanism than the 2018 Act has.

I warned my noble friend the Minister that when he got back to the department, after his warm words in support of my noble friend and other noble Lords who participated, people would tell him that it was impossible, because it would set a terrible precedent—and I think that that is probably what happened. I would ask him just to think again, because I do not think that it sets a precedent at all; it is a unique occasion. If the Government are to demonstrate their support for effective parliamentary scrutiny—and, in particular, effective use of the sifting mechanism—I would urge him to think again and accept these amendments.