Employment Rights Bill

Lord Sharpe of Epsom Excerpts

Consideration of Commons amendments and / or reasons
Monday 17th November 2025 Lords Chamber

Moved by

[Lord Sharpe of Epsom]

Leave out from “House” to end and insert “do insist on its Amendments 23 and 106 to 120, and do disagree with the Commons in their Amendments 120C, 120D and 120E.”

[Lord Sharpe of Epsom (Con)]

My Lords, I am very grateful to the Minister for outlining the government amendments and for the noble Lords opposite’s willingness to meet. But to say that the amendments that have been offered are inadequate would be something of an understatement. In essence, they oblige the Secretary of State, before making regulations, to

“consult such persons as the Secretary of State considers appropriate”.

Who might those persons be? That really is the extent of the amendment. We already know that, so far, government consultations with business on this Bill have been desultory at best. I do not believe that the amendment even qualifies as a bunny, never mind a rabbit.

The chorus of disapproval for this proposed legislation has now been joined by Labour’s most successful ever Prime Minister, Sir Tony Blair. As my noble friend Lord Leigh of Hurley pointed out—and to expand on my noble friend’s remarks—in its report Tony Blair’s institute said:

“At present, employees gain protection from unfair dismissal only after two years—one of the longest qualifying periods in the OECD. The bill would move to the opposite extreme, granting such rights immediately. This would raise employment costs by increasing the legal and procedural risks attached to every new hire and discourage firms from recruiting—a concern already raised by some of the UK’s largest business groups, which have urged the government to amend the bill”.


Addressing the Government’s intention to introduce regulations allowing an initial probationary period, during which an employee could be dismissed under a light-touch process, the institute said that

“uncertainty over what rights apply during probation will do little to reassure employers nervous about taking on staff. Introducing a six-month qualifying period for unfair-dismissal protection, which is more typical among advanced economies including across much of Northern Europe and Australia, is more likely to balance fairness with flexibility”.

Meanwhile, billionaire Labour backer John Caudwell put it rather more succinctly. He said this will make Britain “less investable”. He continued:

“It’s not good for Britain, it’s not good for workers”.


Spot on.

To summarise, we have multiple business groups against this, and perhaps we should recap who they are: the Federation of Small Businesses, the CBI, the Institute of Directors, Make UK, the ADS Group, the British Retail Consortium, Care England, the Chartered Institute of Personnel and Development, Family Business UK, the Recruitment and Employment Confederation and UKHospitality. The British Chambers of Commerce contacted me after the last debate to explain that it would have signed the letter but had been too late.

Academia has added its voice to the chorus of disapproval. Professor Jonathan Haskel of Imperial College, and a former member of the Bank of England’s Monetary Policy Committee, said:

“Using the OECD index of employment regulation, there’s a negative relationship which is that more employment regulation means less intangible investment. My best prediction is that the employment rights bill is a rise in uncertainty for firms. The reason is that these employment rights are set out in broad outline in the bill but will then end up being interpreted by the courts”.


Those are all joined by the Government’s favourite think tank, as we discussed last time: the Resolution Foundation. Lest we forget, its former chief executive now sits in the Treasury. I have to say, looking at the Benches opposite, that they are also joined by quite a lot of Labour Peers, whose facial expressions the Minister cannot see.

The Government will of course say, “Business would say that, wouldn’t they?”, but that is to miss the point. These are the people who make hiring decisions, who decide whether to offshore because it is cheaper and causes them fewer HR headaches, whether to downsize, and whether to just close down completely, as we just heard so powerfully on the last group from my noble friend Lord Leigh of Hurley and his correspondent—I think it was Mr Dunham.

Remember that the impact assessment says the measure is likely to have a disproportionate impact on small and micro-businesses. Additionally, following the decision by the Government to double the conciliating period to 12 weeks for ACAS to resolve disputes, the Employment Lawyers Association has said:

“We are apolitical but the fact is that Parliament can pass all the reforming legislation it wants, but unless those laws can be enforced, with cases heard within a reasonable time, its laws are placed over the horizon, de facto out of sight to both workers and employers alike”.


These are the people who might be expected to benefit from the 10,500 increase in claims forecast to go before ACAS in the Government’s own impact assessment. Instead, they are expressing despair at the broken employment tribunal system.

As we saw last week, unemployment is rising and stands at almost 2 million, and it was reported yesterday that half the 170,000 jobs shed since Labour came to power are from the under-25s. Everyone who knows anything at all about wealth creation, about private sector hiring and about employment law says that the Bill will make it worse.

I need to refer back to the Tony Blair Institute, because it was very explicit about discouraging from hiring and I noticed that the Minister did not engage with that particular point in his introduction. This debate is about the people the party opposite claim to want to help. It is about a young person trying to find a job, a long-term unemployed person trying to rejoin the workforce, a woman wanting to return to work after having children, and somebody recovering from a long-term health issue getting back on their feet. The Bill should be about helping them; it is doing the complete opposite.

The last time we debated this, the Minister constructed a tortuous analogy and said that I and my party were on some sort of journey. If we are, our destination is common sense, and the Government need to listen to the wise voices on their own side and to join us.

On Motion F1, all I will do is quote what the Health Secretary said last week, that

“to be out on strike, setting back the NHS, because you don’t think we’re going fast enough, and because the leadership of your union are not honest enough that some of this change takes time, is extremely irresponsible. It is extremely unnecessary”.

He said that the BMA

“is no longer a professional association, and it is engaged in cartel-like behaviour”,

and that:

“The BMA’s leadership appear more interested in grandstanding and causing pain to patients than improving the lives of frontline resident doctors”.


Those are fairly damning words.

According to the Government’s own analysis, the full-time basic pay of resident doctors is expected to reach £54,300. This is where the farce becomes almost theatrical, because recently we heard that the Treasury considers that anyone earning above £45,000 a year is not a working person.

It appears that the Government have achieved something truly novel. They are actively creating a category of “non-working people”—not my phrase but the Chancellor’s own definition—and then showering them with no-strings-attached pay rises. Meanwhile, the BMA, emboldened by these spineless handouts, continues to abuse its influence, holding our NHS hostage while the Government wave through concessions without so much as a performance requirement or reform condition attached. The 50% threshold is not some sort of draconian barrier but a bare minimum, a line of defence against precisely this kind of chaos. Removing it will only accelerate the downward spiral that the Government have set in motion with their desperate, unconditional giveaways. The union bosses, entirely predictably, have now turned on them the moment it suited their agenda. I beg to move.

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I hope the noble Lords will understand that we have tried to respond to the cases. On the threshold, it is very clear, and I hope the noble Lord will consider not pressing his Motion—and indeed all his Motions. We have said that we will not implement that change without absolutely ensuring that the issue of turnout is properly addressed through members being able to vote not just by post but through other methods. I have banged on long enough, so I hope we can respond to this.

[Lord Sharpe of Epsom (Con)]

My Lords, I am grateful to the Minister for his response, but he has yet again failed to answer the noble and right reverend Lord, Lord Sentamu. We know that you cannot use a spent conviction as a reason for a dismissal, and that is entirely appropriate. The point is that there will not be anybody with a spent conviction in work, because no one will employ them. That is what the noble and right reverend Lord was asking, and yet again the Government have failed to answer what is a very straightforward question. They also failed entirely to address the excellent speech of the noble Lord, Lord Vaux, highlighting the difficulties young people are likely to face, and indeed are facing in the current workplace, because of this Bill.

I am afraid that the answers have not alleviated our concerns on these Benches. We entirely agree with the noble Lord, Lord Burns. It is not just the noble Lord who is obsessed with this; I think the whole House is. If he wishes to press his Motion, we will support him, but, in the meantime, I commend Motion B1 to the House.

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Moved by

[Lord Sharpe of Epsom]

Leave out from “House” to end and insert “do insist on its Amendment 48B.”

[Lord Sharpe of Epsom (Con)]

I beg to move Motion C1.

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Moved by

[Lord Sharpe of Epsom]

Leave out from “House” to end and insert “do insist on its Amendment 62, and do disagree with the Commons in their Amendment 62C.”

[Lord Sharpe of Epsom (Con)]

I beg to move Motion F1.