Employment Rights Bill

Antonia Bance Excerpts

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Sarah Olney]

Nobody is keener to see the Bill pass than the Liberal Democrats, and we have repeatedly worked with the Government to try to express our concerns. We would support the motion were it not for the lifting of the compensation cap being snuck in at the last minute. This last-minute change has not been part of any conversation that we have had with Ministers in the other place. That is why we will abstain on the motion.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

The hon. Member seems to be under the misapprehension that the lifting of the cap was not agreed as part of the negotiation on the compromise. It was. Perhaps she would like to revise her remarks.

[Sarah Olney]

I will not revise my remarks. We have been speaking to many business groups that were in the room with the Minister, and they have told us that it was not part of the agreement. That is why the fact that it is in this motion has taken everyone by surprise, and why we will not be supporting it today.

--- Later in debate ---

[Justin Madders]

I will not give way anymore, because we have not got much time. I will pick up on what the Liberal Democrat spokesperson, the hon. Member for Richmond Park (Sarah Olney) said about compensation. I accept what the Minister said at the Dispatch Box. I hope that when the Lib Dem spokesperson checks back, she will be able to instruct her Lords that this measure was part of the deal and they should not block the Bill any longer. It is also telling that she has only spoken to businesses, not trade unions, about what was agreed. That shows which side the Liberal Democrats are on.

It has to be pointed out that unfair dismissal compensation limits are not operated that often. Most people’s claims are much lower than that. Most people who have been unfairly dismissed who would benefit from the measure tend to be much older workers who sadly do have not any employability in the job market. They are the ones who will benefit from the uplift in compensation, not bad water bosses, because to qualify people have to be unfairly dismissed. I suspect many water bosses would struggle to show that they had been treated unfairly.

Let us ensure that we get this legislation delivered and maintain vigilance across the whole agenda. That means proper meaningful access, not people being stuck in a shed somewhere far away from where the workers are, and serious fines linked to turnover for those who do not play by the rules. It means no loopholes and proper deterrents on fire and rehire so that companies do not think it is even worth going there. We do not want to see those P&O scenes repeated anywhere. It also means holding firm on some of the nonsense that we are still hearing today about zero-hours contracts. People seem to have a problem with fixed-term contracts and zero-hours contracts being completely different things. There has been a lot of conflation there, I am sad to say.

What comes next is important, because the Make Work Pay agenda is not just about this Bill. Let us get this Bill over the line and delivered, and let us get all the important regulations implemented, but there are so many other important things that we need to tackle in our workplaces in this country, particularly, bogus self-employment. That is going well beyond the gig economy; in fact, it is an epidemic, and it is important that we tackle it. The Bill will level the playing field, allowing good employers to compete fairly, and create more security at work. Employing people with proper terms and conditions may even lead to a greater tax take.

Further down the line, we must tackle unfair dismissal law, which is half a century old and desperately needs updating, but that is for another day. We have debated the Bill for over a year, and it is about time the Lords accepted the democratic mandate and accepted that we must deliver it. Let us get it over the line, and let us start delivering for working people in this country.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

I wish to draw attention to my entry in the Register of Members’ Financial Interests, my membership of Unite, and the kind support of ASLEF and the GMB for my election campaign.

This Employment Rights Bill is our promise to working people on its way to being fulfilled, thanks in no small part to my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) and my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders). I am glad to see that Ministers have tabled amendments that reflect the constructive negotiations between themselves, unions—including my former employers at the TUC—and business associations, because that is how we roll in the labour movement. We get round a table, we talk, we come to a deal and we move forward. That is the right way to do things when people do not agree.

To be clear, unions negotiated this deal with the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), and it has my support. Today I will not let the best be the enemy of the good. Cutting the qualifying period for unfair dismissal from two years to six months will benefit 6.35 million workers—disproportionately, young workers, ethnic minority workers, and an astonishing 36% of hospitality workers. New figures based on Government data have been produced today to tell us about the impact that the Bill is going to have. Removing the cap on unfair dismissal compensation means that workers will be able to get what they deserve, and bad bosses cannot price in the cost of ignoring the law.

I was also glad to hear my hon. Friend’s clarity about the timing. Our opinions have not changed, and our opinions on the principle have not changed. What is needed now is practicality to ensure that the Bill moves forward—and as we take it forward, Members should be sure to notice who opposes it. I would expect nothing less of the Tories. I would expect the Lib Dems to remember their total opposition to the Trade Union Act 2016, including their opposition to changes in the political fund rules and their opposition—at that time, but apparently no longer—to the undemocratic ballot thresholds that create a higher bar for trade unions than for anyone else in society. I would gently remind their spokesperson, the hon. Member for Richmond Park (Sarah Olney), that the right to request worked so well for flexible working that flexible working does not work—we are having to fix it with this Bill—and yet she proposes to bring in an unworkable right to request, instead of a guaranteed right to a decent hours contract. I will take no lectures from the Greens—what a shame that they are not here—who are letting their peers vote whichever way they want on something as important as this. As for Reform UK, they pretend to be the representatives of working-class people, but vote against their interests at every turn.

I say to those in the other place: it is time to pass this Bill to make work pay and to deliver the rights that were promised in our manifesto and voted for—the rights that millions have waited far too long to see.

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

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

I agree with my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) that this is a transformational piece of legislation, but it has been weakened. My motion would restore day one rights on unfair dismissal. I tabled a motion to reject the Lords amendments, since when the Government have tabled a motion to adopt a six- month qualification period. I commend the remarks of Lord Collins about issues relating to unfair dismissal. He said:

“These are areas clearly linked to our manifesto commitments, which the Government have an electoral mandate to deliver… we remain committed to delivering unfair dismissal protections… day-one protection from unfair dismissal will not remove the ability of businesses to dismiss people who cannot do their job or pass a probation period, but it will tackle cases of unfair dismissal in which hard-working employees are sacked without good reason.”—[Official Report, House of Lords, 17 November 2025; Vol. 850, c. 561-62.]

That was a very good speech, made just a short time ago.