Employment Rights Bill

Lord Barber of Ainsdale Excerpts

Committee stage
Wednesday 21st May 2025 Lords Chamber

[Lord Ashcombe (Con)]

My Lords, I stand with some trepidation at this stage to support very much the amendments in the name of my noble friend Lady Neville-Rolfe, and indeed I support the other amendments in this group.

We have to think that any company—large, small, charity, whatever it may be—that hires a new employee takes a calculated risk. They are unknown. The company hopes that the individual, young or more mature, will integrate well into the company culture and be capable of handling the expected workload with the appropriate training needed.

I understand the Government’s position, as mentioned in a previous day’s debate on the Bill, that the employee also takes a risk when starting a new job or changing careers. They too must be confident that the role aligns with their skills and aspirations. A probationary period exists to serve both parties. It allows the employee to assess whether the role suits their interests, skills and abilities, while giving the employer time to evaluate whether the employee fits before making a long-term commitment. Is that unreasonable?

In my own place of work, I have seen this very much in practice. In fact, when I returned to work, I had a six-month probation period, and I had worked for them for 25 years before that. We once hired a seasoned practitioner with considerable market experience. However, for various reasons, they did not pass their probation. Should that individual be entitled to bring a claim for unfair dismissal, noting what the noble Lord, Lord Hendy, said? From the employer’s perspective, they are simply trying to safeguard their business, its culture and its ability to deliver results for clients. The smaller the business, the harder it is, as we have just heard and as, I think, the noble Lord accepted.

Is it right that an employee should be granted full employment rights from day one, when both sides are still in a learning phase? Is it fair that a company could face the threat of an employment tribunal for unfair dismissal if the probationary period is not successful, on which we have had a lot of discussion? Whatever happens, should it go towards that phase? Should it never reach the employment tribunal? It is a gruelling process for both parties, and an expensive one—emotionally, culturally, and potentially in the pocket.

The Government rightly seek to stimulate growth, as mentioned by the Minister on the previous group. For that to happen, businesses must feel confident in hiring. But, if the terms of employment are too burdensome, companies may hesitate to expand their workforce. It is imperative that the economy is prevented from becoming stagnant or, worse still, contracting. I simply do not understand why this clause is in the Bill. It does not propose anything that helps growth in this country.

[Lord Barber of Ainsdale (Lab)]

The noble Lord pointed to the daunting process that faces an employer potentially facing an employment tribunal accusation that would damage perhaps their reputation, as well as the daunting issues that also face the employee who is considering going down that course. My noble friend made some emphasis on that point.

The debate has been conducted as if this is a hugely common threat: indeed, as if it is a threat that, potentially, is going to do tremendous damage to our economy. But could I just point to the scale of the issue? In 2023-24, there were just over 5,000 unfair dismissal cases referred from the Tribunals Service to ACAS for the conciliation processes that my noble friend referred to. What is the size of our workforce in the British economy? Is it 25, 26, 27—

[Lord Monks (Lab)]

Thirty-four.

[Lord Barber of Ainsdale (Lab)]

Thirty-four million workers. Five and a half thousand cases. Why is the number so small? It has been suggested that it is because an employer’s immediate response is to offer a settlement to buy off the prospect of a tribunal. Some may make that judgement, but, given the evidence my noble friend has referred to about the unlikelihood of applicants succeeding with their claims, that does not seem a very wise response to give. There may be some, but for the individual, it seems to me, more daunting factors influence them to hold back because it is so painful and potentially stressful that they are reluctant to take their case in the first place.

This whole Bill is about giving people at work in Britain more confidence and there needs to be some sense of perspective about the scale of the issue we are talking about. Five thousand people.

[Lord Ashcombe (Con)]

I am aware of a case of a small company that has got rid of four individuals in view of the legislation because those individuals are not doing a good enough job, but it could live with them if it had the ability to get rid of them. What it cannot face the thought of is having to go down any form of tribunal route or indeed threat thereof. That is not what we are trying to do with this Bill; we are trying to prevent that. We do not want to see those individuals leave employment. That is not what we want, and that is where it could lead a lot of people.