Employment Rights Bill

Andy McDonald Excerpts

Wednesday 5th November 2025 Commons Chamber

[Antonia Bance]

I wish to draw attention to my entry in the Register of Members’ Financial Interests, my proud 23 years in Unite, and the generous support from the millions of ordinary members of the GMB and ASLEF in paying into their political funds to put representatives of the working class here in Parliament.

I am here to deliver a simple but firm message: there will be no concessions on this Bill—not one. Opposition parties in the House of Lords are trying to water down the rights that working people voted for, but we will stand firm. The new deal for working people was a Labour manifesto commitment, and it will be delivered in full.

I want to talk about two sets of amendments, starting with Lords amendments 61 and 72, on political funds. The Lords want to keep the opt-in system, but it is abundantly clear that this is a deliberate attack on the political voice of working people. All this Bill does is restore the long-standing opt-out system that has lasted since 1946. Union members will still have robust rights, and they can opt out easily. Unions are tightly regulated—no other membership organisation has faced these rules. Unions’ political spending is transparent and accountable, with annual returns to the certification officer and the Electoral Commission regulating donations and campaigning. Of course, these political funds support wider campaigning, not just party donations, although I am proud to say that they support party donations too.

I also oppose Lords amendment 62, on keeping the unnecessary and unneeded ballot thresholds, which are designed to stop workers having a voice. The Tory and Lib Dem Lords want to reinstate the 50% turnout threshold that was introduced by the draconian Trade Union Act 2016. I remind Members from the Liberal Democrat party that they opposed that Act in 2016, including the ballot thresholds, and I wonder why they have now reversed their position. Ballot thresholds weaken unions and stall negotiations. Before 2016, ballots triggered talks and resolved disputes early. Now the thresholds delay dialogue and make resolution harder. No other organisations face turnout thresholds; this just singles out unions. Of course, anyone who is familiar with how the trade union movement works knows that no union would call members out on strike if they are not up for it.

With all due thanks and respect to the other place, we will still repeal the Trade Union Act 2016 in full, with no concessions. This Bill is the first step in delivering the new deal for working people—our promise to the working people of this country. This is the change that working people voted for. The Government will not give in to unelected Tory and Lib Dem Lords siding with bad bosses to weaken workers’ rights—not now, not today, not ever.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I draw hon. Members’ attention to my entry in the Register of Members’ Financial Interests in relation to support from trade unions, of which I am most proud.

The past four decades of structural decline in the share of the national income going to employees, decades marked by the erosion of trade union rights, has been exacerbated by 14 years of the Conservative Government forcing down real wages across the United Kingdom, leaving working families still struggling to recover. Against that backdrop, the most urgent task of this Labour Government is to raise living standards. Trade unions are critical to that mission and the Employment Rights Bill will help to deliver that.

The Bill represents a cornerstone of the Government’s new deal for working people, a vote-winning manifesto pledge. I very much welcome evidence of the popularity of these policies in the platform of Zohran Mamdani, New York’s newly elected Democrat mayor. Among other things, he pledged protection for delivery workers, including guaranteed hours. Yet the amendments to this Bill made in the other place would water down that commitment and deny working people the rights they were promised. I therefore must speak in strong opposition to the Lords amendments, which, taken together, would weaken the protections that this House has committed to deliver for working people across the United Kingdom.

Lords amendment 23 and Lords amendments 106 to 120, which concern day one rights, would remove the right not to be unfairly dismissed from the very start of employment. Instead, they would impose a six-month qualifying period and empower Ministers to introduce a further initial period in which only limited protections apply. That is contrary to both the letter and the spirit of the Government’s manifesto. It would leave new employees vulnerable to arbitrary dismissal and recreate the very insecurity that the Bill was designed to end.

[James Wild]

When the hon. Gentleman has spoken to employers in his constituency about this specific provision—I am sure that he has—what have they said?

[Andy McDonald]

The concept is pretty simple. Conservative Members are conflating different issues around unfair dismissal and probationary contracts. They are scaremongering. There is nothing in the Bill that prevents the continuation of probation periods. The only thing we are saying is that it would be unfair to dismiss somebody for an unlawful reason. I really wonder why it is so difficult to grasp that concept.

[Lincoln Jopp]

Will the hon. Gentleman give way?

[Andy McDonald]

No, because I am conscious of time.

There is no impact on retaining probationary periods—they remain intact. Having day one rights against unfair dismissal does not prevent an employer vetting and doing recruitment properly, and using probationary periods legitimately.

Turning to Lords amendment 1B, the so-called guaranteed hours opt-out, this provision transforms a clear right into a conditional option. Instead of guaranteeing a contract that reflects the hours a person actually works, it allows employers to invite workers to opt out of that right altogether. Experience with the working time opt-out shows exactly where this leads: it becomes a standard clause, routinely signed away. That is not the end of exploitative zero-hours contracts; it is their re-badging.

Finally, Lords amendment 62, which reintroduces ballot thresholds for industrial action, seeks to restore one of the most restrictive elements of the Trade Union Act 2016. This House has already agreed that those provisions were excessive and undemocratic. No other organisation is bound by such turnout requirements before it may act. Reinstating them would frustrate meaningful negotiation and delay the resolution of disputes, not promote it. Let us drop the thresholds and quickly move to e-balloting, as we promised.

For those reasons, I urge hon. Members to resist the Lords amendments and to insist on the Bill as originally passed by this House. It must be delivered in full, for it represents the baseline of a fair work settlement. However, while defending the Bill, we must also recognise that it is only a starting point. The consultations now under way must ensure that secondary legislation goes further and fulfils the Government’s wider promise to make work pay. I hope we see a robust and enforceable right of access for trade unions to workplaces, both physical and digital, so that unions can reach and represent workers effectively, with penalties that deter obstruction. I hope we will create a process to expand fair pay agreements beyond adult social care and schools, embedding sectoral collective bargaining across the economy to raise pay and standards in every workplace. We must also make progress towards a single status of worker.

The Employment Rights Bill is a landmark measure, but its promise will be realised only if this House defends it against dilution and strengthens it in implementation. I therefore call on all Members to reject the Lords amendments and to stand by our commitment to working people: to deliver the new deal for working people in full and to build from it a fairer, more secure world of work.

--- Later in debate ---

[Kate Dearden]

The taskforce will bring together different stakeholders so that we can assess the problems within the system and work out the best way to fix them, because at the moment it is not working for employers or workers, who want access to justice and want it quickly.

[Andy McDonald]

Would the Minister agree that the introduction of these rights and protections is absolutely critical, but equally important is the ability to enforce those rights? The Fair Work Agency has the potential to bring that to fruition and ensure that when people are in those circumstances and are the beneficiaries of an award, they will ultimately receive it, because far too many people take on these cases and do not get any redress.

[Kate Dearden]

We met Matthew Taylor, the new chair of the Fair Work Agency, this week to discuss the agency’s progress to ensure that it is up and running at speed. As my hon. Friend rightly points out, enforcement is vital, and it is crucial that workers are aware of their rights. That is why the agency is so transformational in our approach and important for our wider agenda.

To respond to the Liberal Democrat spokesperson, the hon. Member for Richmond Park (Sarah Olney), I urge her to support the Government as we seek to update and upgrade our employment rights to be fit for the 21st century. She mentioned lots around detail. As I mentioned earlier, as is standard for lots of employment rights legislation, we want to consult extensively with businesses, unions and employers to ensure that we get this right, and I am sure that she agrees with that approach.

The hon. Member mentioned turnout thresholds. As I have mentioned, we want to create an industrial relations framework fit for a modern economy and workforce and that works for everybody. We have been clear that we intend to ensure that trade union legislation is proportionate and effective and does not create unnecessary bureaucratic hurdles. We remain committed to removing the 50% turnout threshold for industrial action ballots through the repeal of the Trade Union Act 2016. We support a strong mandate for strike action, but a threshold set in legislation is not the best way to achieve that.

My right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) talked about our proud Labour legacy of the courage and conviction to change lives, and she is a powerful and inspiring demonstration and testament to that. That is why this legislation is so important, reshaping the world of work and delivering security and dignity that people can feel, as she rightly mentioned. We cannot build a strong economy through employment insecurity. The legal loopholes that exist have contributed to the erosion of living standards and allowed a race to the bottom. I am always grateful for her support and thank her for her offer of support as we proceed to Royal Assent and the implementation stages to ensure that everybody across the country can benefit, workers and business alike, and that is why the Bill is pro-worker, pro-business and pro-growth.

My hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders) made a powerful speech and responded eloquently to lots of points raised by Opposition Members, and I thank him for that. I reassure him that we remain committed to the repeal of the 50% turnout threshold, and we have been clear that it is our intention to align the removal of thresholds with the establishment of e-balloting as an option for unions. The amendment does not change that commitment. We are working at pace to permit electronic balloting by April 2026. He will be pleased to know that we will shortly launch a consultation on an electronic and workplace balloting code of practice, and I encourage all stakeholders to respond to that consultation.

I thank my hon. Friend the Member for Tipton and Wednesbury (Antonia Bance) for her excellent points on the importance and use of political funds. I reiterate my remarks on the 50% threshold and hope that she is reassured by them. She will have heard the Government’s commitment to delivering the Bill in full from the Prime Minister and the Secretary of State at Labour conference. I hope to have reiterated that commitment at the Dispatch Box today.

I thank my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) for all his work on this legislation. It has been a pleasure to work with him over a number of years. He mentioned fair pay agreements, which we are introducing for social care, as he rightly said. We will learn from that process before considering their introduction in other sectors, but I appreciate his passion for this area. I am sure that we will be in touch with him to speak about that progress.