Employment Rights: Impact on Businesses

Euan Stainbank Excerpts

Tuesday 16th September 2025 Westminster Hall

[Rachael Maskell]

I am grateful to the hon. Member for mentioning that. When I was the shadow Secretary of State for Employment Rights, we really fought for that right, not least during covid. What a difference it would have made to workers then, and it would have kept our country safer. Of course, we need to look after people when they are sick, so I dispute what the hon. Member for Spelthorne said about a menopause plan costing business—women generally would also certainly dispute that, because having a plan would be better for business and better for women at work.

We must reset the relationship with trade unions, which is why establishing a Fair Work Agency and championing engagement around equality are important. I look forward to the future for businesses with a traditional Labour agenda that benefits businesses and workers by bringing better security and better productivity, and providing the green shoots of rebuilding the economy.

I recognise that businesses are in a fragile environment. Over the summer, I held business summits for the daytime and night-time economy. The attendees are looking forward to engaging with me as we set out our plans for our city together: resetting the climate, realigning workers’ rights and giving businesses a boost. The voices of businesses are really important. The Living Wage Foundation notes that 87% of employers say that paying the living wage improved the reputation of their business, and two thirds said that it improved recruitment. A letter about the Employment Rights Bill from leading economists and employment lawyers, published by the Institute of Employment Rights, says:

“The emerging consensus is that labour laws do not, on the whole, have negative economic consequences, and may well have positive ones.”

[Euan Stainbank (Falkirk) (Lab)]

Does my hon. Friend agree that we have to assess the economic impact and consequences, which we have seen over a number of years, of low pay and insecure hours, and how they have contributed to high turnover and sickness absence in businesses? I believe that those problems are substantially addressed by the provisions of the Employment Rights Bill.

[Rachael Maskell]

My hon. Friend has spoken powerfully and brought that observation to the attention of the House. Low productivity was also a major feature of the last Administration.

The letter goes on to highlight how worker protection positively impacts productivity, how investment in skills improves the competency of workers, and how collective bargaining raises wages and stabilises employment. Over time, that positive investment will spill out to the wider economy and Government, so that there can be investment in the public services that have been so broken. If workers have more in their pockets, they are more likely to spend in the local economy, and wage disparities will be addressed so that wealth is more evenly spread, boosting local business. We also still have parts of the Taylor review and its 53 recommendations to implement to help small employers and those in irregular work.

--- Later in debate ---

[Euan Stainbank]

I welcome the Minister to her place. She is making an excellent point, but I refer her to specific sectors in which some Opposition parties have called for carve-outs. Does she agree that it is important that we do not carve out, for any particular sector, the strong provisions in the Bill, and that it is both morally and economically wrong to say to a young worker that if they work behind a bar, they should have fewer rights than if they worked behind a desk?

[Kate Dearden]

I want every single worker, no matter where they work, to have a good standard of rights in their workplace and to know their rights. The Bill will ensure that we can provide that opportunity for so many people, including young workers, and that they benefit from the legislation.