Wednesday 5th November 2025

(1 day, 12 hours ago)

Commons Chamber
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Justin Madders Portrait Justin Madders
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My hon. Friend is absolutely right. Indeed, that is something that the Resolution Foundation said when giving evidence to the Bill Committee. I will quote that directly:

“Internationally, we can draw scatter plots of the employment level in a country and the extent of employment regulation, and basically those lines come out flat. You have some countries with very high employment and very high levels of regulation, and some countries with lower employment and high regulation”––[Official Report, Employment Rights Public Bill Committee, 28 November 2024; c. 116, Q119.]

So there is no clear relationship with the employment levels across countries. That is confirmed by the OECD, which has done lots of detailed work. That is what the Resolution Foundation said in its evidence to the Bill Committee last year.

Lincoln Jopp Portrait Lincoln Jopp (Spelthorne) (Con)
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Would the hon. Member like to put his money where his mouth is and tell us whether his faith in the Employment Rights Bill is such that he is prepared to make a commitment to his constituents in Ellesmere Port and Bromborough that if, having passed this Bill, unemployment goes up, he will resign his seat?

Justin Madders Portrait Justin Madders
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I absolutely cannot believe that the Conservative party, which saw massive increases in unemployment in my constituency in the 1980s and 1990s when they were in power, have the cheek to start talking about the effects of unemployment on my constituents now.

The Resolution Foundation has said some things in recent weeks that I do not agree with, but it has said things in the past that are much more in line with what we believe the international evidence shows. So the kindest thing I can say about the Resolution Foundation is that I prefer its earlier work.

I turn to Government amendment (a) in lieu of Lords amendment 62, on repeal of the last remnants of the Trade Union Act 2016 and the removal of thresholds for industrial action ballots. I have always held the view that the introduction of e-balloting, if done properly, will lead to much greater participation in ballots and render arguments about turnout obsolete. The implementation timetable that the Government published indicates that e-balloting will begin next April. I hope that the Minister, when she responds, can provide some reassurance that that is still on track, and that we can therefore expect the end of thresholds to come at the same time, or very shortly thereafter. I would be disappointed if the amendment was an attempt to kick this issue into the long grass. I am not particularly keen on the conditionality in the amendment, which talks about whether to repeal the thresholds. There should be no question of “whether”; it should be about “when”. After all, that is what we promised to do in our manifesto. I urge the Minister to resist any temptation to introduce any conditionality and to deliver the Make Work Pay agenda in full, as we said we would.

I will conclude, because I am conscious that a number of Members wish to speak. I am proud that the Government are continuing to commit to implementing this Bill in full. The policies in the Bill are overwhelmingly popular with the public. They formed a key part of our manifesto and remain central to the Government’s plan for change. We on the Labour Benches proudly stand against those who seek to water down this Bill and hamper its implementation. We are proud to back workers and to deliver meaningful change in their working lives. We stand against maintaining the status quo of low pay, low security and little dignity at work, and we stand for job security and for delivering on our promises.

--- Later in debate ---
Andy McDonald Portrait Andy McDonald
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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 Portrait Lincoln Jopp
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Will the hon. Gentleman give way?

Andy McDonald Portrait Andy McDonald
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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 ---
On amendment 48B, I am exasperated, as I have stated several times, that with the definition of “seasonal work” as captured including work in the creative industries, retail, hospitality and other sectors, there would be an attempt to carve out those sectors from other rights in the Bill. The Tories, Lib Dems, Reform and anybody else who supports the amendment tonight will have to go back and explain to their constituents why they believe that those who serve them behind a bar should access fewer rights than those who work behind a desk. The industries targeted under the amendment are very specific.
Lincoln Jopp Portrait Lincoln Jopp
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I am grateful to the hon. Member, who I like very much, for giving way on that point. He is clearly a massive fan of the Employment Rights Bill. The people of Falkirk are watching him, so would he like to commit to them that if, having passed the Employment Rights Bill, unemployment goes up and therefore we have fewer workers with fewer rights, he will resign from his seat?

Euan Stainbank Portrait Euan Stainbank
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I make the commitment to the people of Falkirk that the quality of their work, especially for younger people, will go massively through the roof. Younger people in my constituency who have been subject to insecure work, low pay and zero hours contracts have seen the quality of their work diminished, so my guarantee to the people of Falkirk is that the quality of work will go up. I think other Members referred to this, but it is a cheek for Tory Members to talk to post-industrial communities such as Falkirk, which were savaged by the Thatcherite Government. They will get absolutely no credence in my constituency.

I say to those on the Opposition Benches that they have time to change their mind. They can back the Government today, get the Bill passed without it being watered down and stop the attempts that are perceived, at least in my constituency, as an attempt to betray young British workers who are doing the right thing, going out and earning their way. For too long under the Tories, those workers have lost the belief in the quality and opportunity that work provided. They will see massive benefits from the Bill. Make work pay and get this done.