Employment Rights Bill

Lord Sentamu Excerpts

Consideration of Commons amendments and / or reasons
Tuesday 28th October 2025 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, noble Lords have mentioned the lack of detail in the Bill. As somebody who has been heavily engaged in employment law over the last 40 years, I am very much aware of the need to ensure that there is secondary legislation to give time to consult on issues. You cannot simply put a lot of detail in relation to employment law in a Bill. That has been the practice, from my experience, since the mid-1980s.

My noble friend has just made the point about the business and trade discussions. Business groups have written urging many noble Lords to support amending the Bill, particularly the qualifying period. The Department for Business and Trade has held constructive discussions with business representatives and organisations through the development of the unfair dismissal. We will consult fully with business groups, trade unions, employers, employees and civil society on how to put our plans into practice before legislation comes into effect, adopting a very sensible approach of proper consultation. Any qualifying period is weighted unfairly in the employer’s favour. My noble friend made the point that repealing the two-year qualifying period addresses the issue by giving all employees the basic right from day one not to be unfairly dismissed. The reality is that most dismissals are fair, but there are occasions when they are unfair.

I welcome the current journey of the noble Lord, Lord Sharpe. As my noble friend pointed out, when this protection was introduced there was a six-month qualifying period. The Conservative Government increased it to one year, then to two years, so I very much welcome the pathway that the noble Lord, Lord Sharpe, is now on. If he goes from two years down to six months, it will not be very hard for him to accept day-one rights. We are on the right pathway and can very much welcome that.

I welcome the Resolution Foundation’s contribution, which I have heard on the radio and read. It is important that employees can enforce their rights. We are contributing to how the tribunal system can be far more effective. But, to come back to my noble friend’s point, what often constrains our economic growth strategy is that many employees are resistant to leave jobs that they are currently in to seek new opportunities, new trades and new occupations. That is what is happening in our economy at the moment. The flexibility that we want can be better served, as my noble friend said, by day- one rights.

I come back to the other amendments. On the points made by the noble Lords, Lord Fox and Lord Sharpe, we are determined to address the issue of one-sided flexibility. I understand the points made about hours that fluctuate seasonally, but the current one-sided flexibility can leave people unclear on when they will next get paid work and how much time they need to keep available for work. Under the Bill, there are several ways, depending on the circumstances, in which an employer can approach seasonal demand while upholding the new rights, such as using limited-term contracts or guaranteed hours in various ways. The Bill absolutely covers that.

On the amendment from the noble Lord, Lord Fox, the important thing is that he recognises the need for that right to be guaranteed initially. To create an economy that works for all, we want predictability and security to be a baseline in all jobs, and we think that employers should have to offer all qualifying workers guaranteed hours. The Bill is the best way to ensure that all qualifying workers benefit from that right.

The provisions in the Bill will apply to all employers, allowing good employers to benefit from a level playing field, which is the important point here. We need to recognise that most employers are adopting incredibly positive policies. This legislation is underpinning those good employers, so that the cowboys and others who are not playing a fair game can be properly addressed. We are trying to ensure that there is fairness at all levels.

[Lord Sentamu (CB)]

I was hoping to hear an answer to the question posed by the noble and learned Lord, Lord Phillips: without a qualifying period, will employers take on people with a criminal record? That question has not been answered. Secondly, Clause 25 talks about the right not to be unfairly dismissed, so this question of people being wrongly dismissed because there is a qualifying period is not quite right. Will the Minister answer that difficult question? Would you employ somebody who has a criminal record without a qualifying period?

[Lord Clarke of Nottingham (Con)]

I was about to make exactly the same point, but the noble and right reverend Lord beat me to it. The Minister has not addressed this point at all. The strongest argument against the day-one issue is that employers plainly will not take the risk with ex-offenders, who we are trying to get rehabilitated, or many young people—20 year-old boys and girls—who have never had a job before. The Government’s own impact statement seems to bear this out. The Minister has not even been briefed on the subject, and he certainly has not addressed it in his reply. This is the best argument made against the Government’s proposals.