Employment Rights Bill

Lord Leong Excerpts

Consideration of Commons amendments and / or reasons
Wednesday 10th December 2025 Lords Chamber

[Lord Hendy (Lab)]

I am coming to the end.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

Will my noble friend speak more specifically on the points raised? Perhaps he could wind up his contribution.

[Lord Hendy (Lab)]

I am coming to the conclusion. The Trade Union Act 1913 changed the definition of a trade union to allow it legitimately to spend funds on other objects beyond industrial relations and, if approved by a ballot of the members, a union could have a political fund to be used for specified political purposes. Each member had to be given the opportunity to opt out of payment of that part of the subscription earmarked for the political fund. That was the compromise. In seeking to maintain, in this Bill, the outdated compromise of 1913, the Government have gone further than they needed. What they should have done—and what they could do, if objection is still maintained—is repeal the modern form of the 1913 Act and allow unions, like all other clubs, corporations, partnerships and co-ops—

[Lord Leong (Lab)]

Order. May I ask my noble friend to wind up now, please?

[Lord Londesborough (CB)]

My Lords, I am going to speak, in mercifully brief terms, about SMEs, but I will spare noble Lords the history of SMEs in the UK from 1910 to 2026.

My point, in relation to Motions B and B1, is that lifting the cap on unfair dismissal without warning and at this very late stage fundamentally undermines the claims of careful consultation with employers. My email inbox, like those of many others in this place, is awash with anger and indignation from SMEs in particular. The question they keep asking is: how can we trust this Government, coming as this does after punitive and disproportionate hits on employers’ national insurance contributions and inflation-busting increases in the minimum wage, who are sneaking in this clause on uncapped compensation? SMEs will not be persuaded by the data we have heard in this debate on medians and modes. Frankly, we are creating yet more uncertainty, piling up the risks of employing new staff and fuelling unemployment that much further. It is anti-entrepreneurial, anti-enterprise and, I fear, a job destroyer. In my view, it has no place in a free, growth-driven economy.