Employment Rights Bill

Debate between Lord Palmer of Childs Hill and Lord Pitkeathley of Camden Town

Committee stage
Tuesday 3rd June 2025 Lords Chamber

[Lord Pitkeathley of Camden Town (Lab)]

My Lords, I have tabled Amendment 132 as a probing amendment to highlight some of the concerns from the perspective of small businesses. Amendment 137, proposed by the noble Lord, Lord Palmer of Childs Hill, may perhaps be a different side of the same coin. I refer the House to my register of interests.

The intention behind the amendment is to explore the scope of possible options for better supporting both employees and employers, particularly small employers, who often lack access to in-house HR support, legal expertise or representation from trade unions. This legislation rightly seeks to strengthen workplace protections, and with that comes the need to ensure that small employers are equipped to meet their responsibilities fairly and confidently without being overwhelmed.

A one-size-fits-all approach risks overlooking the structural disadvantages that many small businesses face in navigating employment disputes or resolving workplace issues informally. One concern in this context is the potential for so-called ambulance chasing. I use the phrase cautiously, but it reflects a genuine anxiety among small employers. In the absence of good advice or proper guidance, a small employer may feel compelled to settle a claim, not based on merit, but because the cost, stress and complexity of the legal process makes fighting it feel simply unviable. That can undermine confidence in the system for everyone.

The aim behind the amendment is to consider how we might increase the availability of qualified independent advisers—professionals who can support employees in entering into a settlement agreement with full confidence and understanding, but in a way that is accessible, affordable and proportionate for small businesses too. This could help reduce the number of cases that unnecessarily escalate into formal litigation.

The presence of a well-informed independent adviser can give both parties clarity and reassurance. In such circumstances, access to credible professionals of the kind that organisations like the CIPD can recommend or help bring forward would seem both helpful and sensible. I fully acknowledge the concerns raised by colleagues on these Benches, particularly the risk of diluting the role of unions, especially in larger workplaces, where collective representation plays such an essential role. I value constructive conversations with colleagues and recognise the importance of safeguarding that voice and that function.

At the same time, I believe it important that the voice of business, particularly small business, is heard clearly from these Benches. Too often, the debate around employment rights can polarise into assumptions of employer versus employee or big business versus organised labour. But many of us bring experience from the front lines of running businesses that are small, community based and deeply invested in treating their staff fairly. It is essential that these perspectives are represented not to dilute rights but to ensure that they are designed in a way that is practical and sustainable and that supports good employment outcomes for all.

I also welcome the Government’s broad commitment to improving the enforcement system, including through proposals for the fair work agency and reforms to the tribunal process. These are important developments, and I hope that they lead to a more accessible and efficient workplace landscape for all parties.

Nevertheless, I believe that the specific issues raised here, particularly those that affect small and micro-businesses, merit further reflection. We know that many small employers genuinely want to do the right thing but, without access to the right structures or advice, they may find themselves exposed. That can have an effect on not just the business owner but employees, who may not get the resolution they deserve. Just as we rightly ensure that employees feel heard and protected, those of us with business experience also want to ensure that employers’ concerns are reflected, especially where they lack the infrastructure to manage complex processes alone.

I am happy to withdraw the amendment following the debate and the Minister’s response, but I hope that the reflections it prompts will help shape the implementation of the Bill in ways that are proportionate, inclusive and fair to businesses of all sizes, as well as to the people they employ. I beg to move.

[Lord Palmer of Childs Hill (LD)]

My Lords, I will speak to my Amendment 137 which, as the noble Lord, Lord Pitkeathley, said, is probably the other side of the same coin.

My amendment seeks to expand the statutory right to be accompanied at disciplinary and grievance hearings. As it stands, the law allows workers to be accompanied by only a fellow employee or trade union representative. My Amendment 137—the other side of the coin—would broaden that right to include individuals certified by a recognised professional body as having relevant experience and training in supporting workers through such processes. It also provides for the Secretary of State to regulate which organisations may be authorised as professional bodies for this purpose to ensure that a proper standard is maintained.

At the heart of any disciplinary process is the need for transparency, fairness and due process. This is especially true in the workplace, where livelihoods and the professional reputations of individuals are at stake. Workers should never have to undergo the difficult procedures of disciplinary or grievance hearings alone. The presence of a colleague, union representative or other chosen companion ensures that employees not only are supported but have a safeguard against any unfair treatment or misunderstandings during the process. Not every individual is able to cope with this on their own. Some may well do, but they will need some help.

In fact, the presence of a properly trained professional companion is often the difference between an employee being able to make their case cogently or being denied a fair hearing. The law currently goes some way towards recognising this, but I am afraid that it is increasingly inadequate for the 21st century.