Enterprise and Regulatory Reform Bill

Lord Stevenson of Balmacara Excerpts

Wednesday 5th December 2012 Grand Committee

[Baroness Turner of Camden]

I understand that the TUC refers to Clause 12 as “Beecroft-lite”, and I think my noble friend Lord Monks has already referred to it in that light. It will be recalled that the Beecroft recommendations were intended to make it easier for employers to hire and fire workers without having to justify or explain the decisions. The recommendations were widely condemned, even by employers’ organisations such as the EEF. Clause 12 enables employers to offer employees a sum of money and a compromise agreement in return for leaving their employment, as we have heard during these discussions. The conversations will remain confidential and cannot be admitted as evidence in unfair dismissal cases.

The TUC opposes the proposals in this clause since it believes that it will send out a clear signal to employers that it is acceptable for them to sack staff for an arbitrary reason without having to follow a dismissal procedure. The provisions in this clause are very complex and likely to lead to possibly costly legal wrangles.

Another point that occurred to me is that nowhere in the Government’s wording is there any reference to trade union representation, although my noble friend Lord Young attempted to introduce it in Amendment 20G. Quite obviously, the right to trade union representation in these circumstances is very necessary. At the same time, as I have already indicated, the proposals are so unsatisfactory that even with the reservations that have been expressed—which may, I hope, cause the Government to look again at these provisions—I still think that this clause should be opposed. That is what the TUC would like us to do, and I certainly believe that there are strong reasons for doing so.

[Lord Stevenson of Balmacara]

My Lords, I am very grateful to my noble friend Lady Turner for raising this particular debate because it is when one looks at the whole clause that one is able to reflect a little on the debate so far. We have learnt quite a lot, I think, about the way that the Government wish to approach this area, but we have not understood very much.

Many of the clauses we are discussing in this section of the Bill, and this clause in particular, strike at the heart of the way in which we want our society to be run. I had always understood that it was commonly agreed among the parties represented in your Lordships’ House, and more widely, that there was a case for government to regulate properly the way in which employers and employees went about their business. It should not be obstructive or didactic, but it must bring to bear fairness and other aspects of the good society we all wish to live in.