Employment Rights Bill

Ian Lavery Excerpts

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Kate Dearden]

I am pleased to return to the Employment Rights Bill for the consideration of Lords amendments for a third time.

The Government’s plan to make work pay, on which we were elected and in which we committed to deliver the Employment Rights Bill, will bring employment rights legislation into the 21st century, extending the protections that many British companies already offer to their staff to all. By doing so, we will endeavour to end the unfair market competition in which some firms seek to beat their competitors not by better quality or increased value, but by cutting the pay and conditions of their workforce. That is why this Bill is truly pro-business and pro-worker, pro-growth and pro-competition, and contributes to the creation of a fair and flexible labour market.

This Bill is a win-win for employers, employees and a more competitive British economy. By delivering this change together, we will back businesses that do the right thing while giving hard-working people the job security and opportunities that they deserve. That is why we must press ahead with delivery. Too many workers are waiting too long to feel the benefits of these reforms, and too many businesses face the uncertainty of when this Bill will become law and want clarity on its implementation. The Government are seeking the support of this House so that we can secure Royal Assent and finally be able to move towards implementing change.

First, I will speak to the Government amendments in lieu, which relate to unfair dismissal. In late November, I convened a series of constructive conversations between trade unions and business representatives, and I am extremely grateful for the positive and productive contribution of both sides of industry to that dialogue. It is a testimony to their leadership, and I thank them for it.

I am pleased to report that we have come to a workable agreement with trade unions and business representatives on the unfair dismissal provisions. The Government’s amendments in lieu will reduce the qualifying period for unfair dismissal from 24 months to six months, while maintaining existing day one protections against discrimination and automatically unfair grounds for dismissal. The implementation road map sets out that the changes related to unfair dismissal will come into force in 2027. That is the timeline that businesses have been working towards.

It is also important to limit the time that employees must wait for their rights to be strengthened while implementing changes in a way that is manageable for business. That is why I am pleased to tell the House that the six-month qualifying period for unfair dismissal protections will be brought in from 1 January 2027.

[Ian Lavery (Blyth and Ashington) (Lab)]

My hon. Friend has done a remarkable job with this Employment Rights Bill. However, it would be remiss of me not to ask her a question. The new deal for working people stipulated quite clearly that employment rights from day one were sacrosanct, then a manifesto pledge in 2024 said categorically to the British people that we would have day one rights for working people. Why has that changed?

[Kate Dearden]

My hon. Friend will know that this Bill is extremely close to my heart, as it is close to the hearts of many Members in the Chamber today. It is something I have worked on for many years alongside trade union colleagues and, of course, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner). Achieving the best possible deal for working people is the reason I am in this job, and it is why I wanted to ensure that trade unions were consulted at every step of the way, along with the excellent business leaders who are crucial to delivering the growth our country desperately needs. Our amendments in lieu will deliver on our promises for working people up and down this country, while ensuring that the Bill is not stuck in parliamentary limbo for another year.

--- Later in debate ---

[Andy McDonald]

I wholeheartedly agree with my right hon. Friend. I think that this episode highlights, again, flaws in the upper House, but even with the convention of double insistence, the concession goes too far.

[Ian Lavery]

My hon. Friend was one of the authors of the new deal for working people, which insisted that the most critical part of this Employment Rights Bill would be employment rights from day one. Does my hon. Friend agree with me on that point?

[Andy McDonald]

Absolutely, and no decent employer should fear any of these measures. Rogue employers were warned that exploitation and arbitrary dismissal would end, but under the compromise, a bad employer may still dismiss someone without reason or justification.

--- Later in debate ---

20:46

Division 385

Ayes: 327

Noes: 162

[Ian Lavery]

On a point of order, Madam Deputy Speaker. When I intervened on the Minister earlier, I should have declared an interest with regards to my support from the trade union movement, of which I am extremely proud. For that, I humbly apologise.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the hon. Member for having corrected the record and for putting his interests on the record.