Employment Rights Bill

Debate between Kate Dearden and Andy McDonald

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Kate Dearden]

If hon. Members allow me to make some progress, I will get to the background and reasoning for the compensation cap.

Continued delay to the Bill will put implementation at risk, which creates insecurity and uncertainty for workers and employers alike. I hope the other place acknowledges the importance of this and will let the Government deliver the Bill, which is backed by an electoral mandate, as my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) said. We have been engaged in ping-pong for far too long, and further delay is in no one’s best interests. I hope the arguments I make today will address the reservations of those Members of the other place who have been engaging in good faith when they have had genuine concerns about the Bill.

As I told the House last week, I convened a series of constructive conversations on the unfair dismissal provisions, which resulted in a workable agreement with trade unions and business representatives and was the subject of Government amendments made last week. I can assure hon. Members, as someone who was in the room during the negotiations, that the agreement between unions and business representatives was made with good will and in good faith by all sides.

As those representatives of the British Chambers of Commerce, the Chartered Institute of Personal and Development, the Recruitment and Employment Confederation, Small Business Britain, the Federation of Small Businesses and the Confederation of British Industry said in today’s letter to the Secretary of State, the “outcome” of the

“dialogue…represented a significant step forward which will have a positive impact on growth and opportunities.”

The amendments tabled in the other place undermine that agreement, as the compensatory award cap would not be removed and instead the Government would conduct and publish a review of the impact of the cap. The removal of the cap would then require further primary legislation.

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

My hon. Friend has set out how sensible the conversations have been thus far, but does she agree with me that they have been totally frustrated by colleagues down the corridor, who have no regard for the mandate that was returned to the Government at the last general election, and that we should stand firm and make sure that these rights are not further impeded by the unelected House?

[Kate Dearden]

That is why our motion today disagrees with the Lords amendments and insists on our amendments from the previous round of ping-pong, which deliver on the agreement made by trade unions and business representative organisations.

Employment Rights Bill

Debate between Kate Dearden and Andy McDonald

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Andy McDonald]

No, I will carry on.

This debate has been muddied by talk of probation. We never proposed abolishing probation periods—they are proper and necessary—but no system should allow dismissal without cause for blatantly unfair reasons. At present, workers can still be dismissed without cause nearly two years into a job. Under this compromise, they can be dismissed almost half a year in, when they might have a mortgage to pay and a family to support. This climbdown casts doubt on the Government’s resolve and determination to deliver all the elements of the new deal for working people in full.

Worse still, emboldened opponents of the workers’ rights reforms will return for more. They will undoubtedly attempt to weaken the Bill through secondary legislation. Major businesses are already signalling that they will use consultations to soften, delay or carve out core protections. Their language of “burdens”, “balance” and “flexibility” is not commentary, but a co-ordinated push to reshape the settlement.

I say to my colleagues on the Government Front Bench that they should be bold and take heart. The thing that was missing from this Bill was the status of workers’ rights reforms. If we were to take courage in our hands and deal with that issue, we would resolve matters by collecting uncollected tax and national insurance to the tune of £10 billion per annum, as well as giving people security in employment. Think about the lack of a pull factor for people to go into the black economy.

If this legislation is to deliver a new deal for working people, this House must ensure that the back door is not opened to dismantling it. I urge Ministers, even now, to reconsider, because they are making a profound mistake.

[Kate Dearden]

I only have a few minutes, so I will try to respond as quickly as I can to comments from colleagues across the House. I thank everybody for their reflections today.

To respond to the shadow Minister, I do not recognise the figures he mentions, and I urge hon. Members to reflect carefully on the figures that he mentioned in the debate. I would have thought that he had learned the terrible lessons from his former boss, Liz Truss, and I know my constituents are still paying the price for the impacts of her mini-Budget. He is now quoting the Growth Commission, which has Liz Truss as an adviser. I will leave it at that.

The Tories had 14 years to adapt to the way the world of work has changed, but they did nothing to tackle exploitative zero-hours contracts and barely acknowledged the existence of the gig economy. They saw the impacts of covid on our key workers and the limits of statutory sick pay, and decided to do nothing. The world of work has changed an enormous amount in the last 20 years, and the Conservative party seems to be telling us that the system is working as intended, but I say that it is not. I say it needs change, and it needs this Bill.

I thank my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) for her leadership, and for all her work on the Bill and on our wider package for working people. I know she is keen to see the time that employees must wait for fair rights to be shortened, and we share her desire for employees to benefit as soon as possible from this Bill, which is why it is so important that we get it on to the statute book and implemented as soon as possible. I thank her for her remarks and reflections today.

The Government amendments in lieu are a result of dialogue and compromise. Business and unions have preferred to go the extra mile to find solutions, rather than insisting on their own positions and disregarding all other perspectives. I thank my colleagues for their reflections, and I am pleased that we have been able to provide a workable agreement with trade unions and business representatives on the unfair dismissal provisions.

Employment Rights Bill

Debate between Kate Dearden and Andy McDonald

Consideration of Lords message
Wednesday 5th November 2025 Commons Chamber

[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.

Oral Answers to Questions

Debate between Kate Dearden and Andy McDonald

Thursday 30th October 2025 Commons Chamber

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

10. What assessment he has made of the potential merits of implementing fair pay agreements in a range of business sectors.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I thank my hon. Friend for his long-standing advocacy in this area. We want to work constructively with unions, employers and stakeholders to build on the Employment Rights Bill. Our first priority for a fair pay agreement is adult social care, a large and complex sector with over 19,000 providers and 1.5 million dedicated workers. As such, our priority is ensuring that this process works effectively, which is why I am delighted that the Government have announced a £500 million investment in the first ever fair pay agreement in the social care sector. We will use what we learn to consider where fair pay agreements can offer similar benefits across other sectors.

[Andy McDonald]

I thank the Minister for her response, but with the cost of living pressures continuing, it is clear that delivering increased real incomes and better living standards is our No. 1 priority. Can the Minister say a little more about which further sectors are most ready for fair pay agreements, and what steps the Department is taking to meet the UK’s obligations, as a member of the International Labour Organisation, to extend sectoral collective bargaining as a means to raise pay and improve living standards?

Trade Union Workplace Access

Debate between Kate Dearden and Andy McDonald

Wednesday 22nd October 2025 Westminster Hall

[Kate Dearden]

I agree with my hon. Friend, and enforcement will be really key to that. I encourage him to get involved in the consultation and to share his views on exactly that point.

The Government will review responses to those two consultation questions with interest, as we will the responses to the consultation as a whole. The consultation matters, because it is important that the implementation of the right of access works in practice, not just on paper. That is why the Government have committed to support businesses throughout the implementation of the Bill, and why we will produce a new code of practice for the policy. That will contain practical guidance on how access should take place in practice to help support employers and businesses to manage the process smoothly and effectively. The Government will consult on that code next year before the new right comes into force in October 2026.

My hon. Friend the Member for Middlesbrough and Thornaby East also mentioned enforcement, and I welcome his support for the Fair Work Agency and its newly appointed chair, Matthew Taylor. Strengthening our labour market, compliance and enforcement is absolutely key to this issue, and to our wider Employment Rights Bill.

[Andy McDonald]

Does the Minister agree that there are many good employers across our economy who actively engage and encourage trade union access and recognition? They could be of great service in the process that she describes for supporting other businesses as the regulations are implemented.

[Kate Dearden]

I could not agree more. There is brilliant practice across the country and across workplaces, with good employers and unions working together in the better interests of the workforce. That is why the Employment Rights Bill, which the Government are proud to be implementing, is such a positive step forward for workers, employers and our wider economy.

The new right of access will deliver for everybody, recognising the needs of unions and employers. Building on the good work that already exists across this country, it will deliver on our make work pay commitment to ensure access is responsible and regulated. It will also provide the opportunity for many workers to understand their rights and access trade unions, which are such a vital part of our economy.

I look forward to working closely with my hon. Friend the Member for Middlesbrough and Thornaby East and with all other hon. Members present, on both sides of the House, to deliver this positive change for the British economy. I thank my hon. Friend again for securing the debate, and I thank all other hon. Members who have contributed to it. I look forward to working with them as part of this agenda.

Question put and agreed to.

Employment Rights: Impact on Businesses

Debate between Kate Dearden and Andy McDonald

Tuesday 16th September 2025 Westminster Hall

[Andy McDonald]

If workers are in good, well-paid work, they can go on to lead good, flourishing lives, and they will return that as a dividend through their collaboration with their employer. They will also be in a position to be more active in the economy. We know that when working people have money, they are able to spend it and generate activity in the economy. Does the Minister agree?

[Kate Dearden]

I absolutely agree that all workers will benefit in some way from the Bill and be able to give back to the economy, whether by spending in the local economy or by contributing to other local businesses.