Employment Rights Bill

Michael Wheeler Excerpts

2nd reading
Monday 21st October 2024 Commons Chamber

[Michael Wheeler (Worsley and Eccles) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests, to my membership of USDAW and the GMB and to the fact that I chair USDAW’s parliamentary group.

I spent my career as a trade unionist working to better the lives of people in low-paid and insecure work. They are exactly the sort of people who will benefit from the measures in the Bill, but the Bill goes so much further. I am proud to have stood on an election platform that put improving the conditions of all workers at the heart of the change that was promised. I am even prouder to be stood here today supporting the Government who are delivering that.

I will focus on one element of the Bill: the right to a contract that reflects the hours that someone regularly works. Too many people are contracted for pitifully few hours and are utterly reliant on additional hours that can fluctuate too wildly to provide financial security, with no guarantee that they will not be taken away at the whim of an employer. Measures in the Bill will take steps to rebalance that. If the hours are regularly needed by the employer and worked by the worker, it is only fair that they are guaranteed in the contract.

While hugely welcoming the Bill, I urge the Minister to consider the use of the word “low” in its drafting, as it might unfortunately limit the benefits and lead to unintended consequences. I ask the Minister to work with trade unions, as the organised representatives of workers, to ensure that the maximum number of working people benefit from this new right. I will be proud to vote for this Bill tonight. I commend it to the House.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

Employment Rights Bill (Second sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 26th November 2024 Public Bill Committees

[The Minister for Equalities (Dame Nia Griffith)]

I refer to my entry in the Register of Members’ Financial Interests and my membership of USDAW, the Union of Shop, Distributive and Allied Workers.

[Michael Wheeler (Worsley and Eccles) (Lab)]

I refer to my declaration in the Register of Members’ Financial Interests and my membership of the GMB and USDAW.

[Anneliese Midgley (Knowsley) (Lab)]

I refer to my declaration of interests and my membership of Unite and the GMB.

--- Later in debate ---

[Steve Darling]

Q My second question is to you, Neil, although I do not know whether you will be able to answer it—I listen with interest. How could the legislation impact on employment opportunities for individuals who have a disability, whether that is a sensory, physical or learning disability?

Neil Carberry: I regret that we are not at the end of the session, because it would have been lovely to meet Jennie.

Let me reflect on the REC’s experience. Over the past two years, we have placed 3,200 people into work from long-term unemployment through the Government’s restart scheme, and many of those people have faced barriers associated with disability. Allen reflected earlier on the flexibility offered by hospitality. Agency work also gives us a chance to do things a bit differently; it is not nine-to-five in the office. Access to Work is obviously an excellent scheme, but it only goes so far.

I will give you an example from Birmingham, where we have placed a single father into work. His challenge was not his own disability; he has a severely disabled child. The school to which one child goes is on one side of the city and the mainstream school the other child goes to is on the other side of the city, so he cannot do a nine-to-five. We have been able to place him into work on a flexible contract—when he can work, on a zero-hours contract. That is creating some opportunity.

What is really important in the whole Bill is to meet the workforce where they are, and they are somewhere different from where they were 10 or 15 years ago. This need for flexibility is how people manage. Let me round off with my favourite example. We have a member which fills Christmas shifts for John Lewis up at Magna Park in Milton Keynes. That is 3,000 jobs every day between August and Christmas, making sure that you get your Christmas presents. Ten years ago, they needed 3,500 candidates to fill those jobs because people got sick, had a week off, and obviously did not work seven days a week. Now they need 12,000 candidates, because people have greater choice: they are sitting at home, signed up to five or six of my members, and they are taking the shifts they want. For instance—this is an example that we have used in our own “temp work works” campaign—we have a temp worker who is managing a chronic illness, and they are working in the ways that they can work. If we think about the Government’s agenda today, I think embracing flexible work and agency work on that front, as an enabler for people, is really important.

[Michael Wheeler]

Q This question is primarily for Allen and UKHospitality. How big of a challenge is retention in the hospitality sector? Do you agree with the Nationwide Caterers Association that one benefit of the measures in the Bill around guaranteed hours will be reduced staff turnover?

Allen Simpson: Turnover is higher in hospitality than in many other sectors. Part of that is what you might call non-regretted turnover—that is, people who are in hospitality for a period and move on to their wider career, people who were students, or people with caring responsibilities. There are also people who move on for other reasons.

For people who want to be on a fixed-hours contract and are currently on a flexible contract, I absolutely agree that the ability to move from one to the other should help with retention—that seems absolutely true, yes. Equally, there are other elements of the Bill that provide a really suitable balance towards the worker and that will have exactly the same effect. The question is balancing that real value, which is absolutely there, against the unintended consequences of, as Neil has indicated, creating a hurdle rate, which means that it is hard to bring people into the workforce.

We saw, I think today, that there are 2.8 million people in the UK who are unemployed for health reasons. This is a sector able to bring those people in, and we need to make sure that we are both retaining and giving opportunities to people already in the sector and providing access to the sector for those 2.8 million people.

[The Chair]

Before I call Nick Timothy, we do not have long left now, and other Members are indicating that they want to speak. Could questions be quick and answers be slightly shorter, too?

Employment Rights Bill (Third sitting)

Michael Wheeler Excerpts

Committee stage
Thursday 28th November 2024 Public Bill Committees

[The Chair]

I call Michael Wheeler to ask a very brief question, which should receive a brief answer.

[Michael Wheeler (Worsley and Eccles) (Lab)]

Q Thank you to the panel for your evidence so far.

I will just circle back to guaranteed hours. Although I appreciate that flexibility is of value in the sector, if the hours are there in the business and regularly being worked, would you not agree that that demonstrates there is a need for those hours in the business to be worked, and therefore, in the interests of fairness and financial security for workers, should those hours not be guaranteed for them?

Helen Dickinson: Again, it comes back to how. A lot of people who work flexibly want to vary their hours because they have other commitments, either family commitments or caring commitments. From an employee perspective, they should absolutely have the right to request flexibility, or to be able to have future hours that reflect something that they have over whatever reference period it is, whether it is 12 weeks or longer. If the regulations end up requiring that reference period—and, by definition, requiring employer to offer whatever that period is to the employee, just by process—peaks and troughs around peak trading periods and employees’ other commitments will cause the company to end up in a continual process of changing people’s hourly patterns, all the time and for a lot of people. When a company has multiple locations, and tens of thousands or hundreds of thousands of employees, it could be quite difficult.

I think we are absolutely agreed on the principle. The question is how you implement it, and whether there is a way to implement it that gives the employee the right to request, rather than putting the onus on the company to put in a whole load of process that actually, at the end of the day, might not be what the employee wants.

[The Chair]

Order. I have to bring this session to an end. We have run out of the allotted time, and sadly, there are some Members of the Committee who did not get the opportunity to ask the questions that they wanted to ask. However, I thank the witnesses for the time they have spent with the Committee.

Examination of Witnesses

Joanne Cairns and Liron Velleman gave evidence.

Employment Rights Bill (Fifth sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 3rd December 2024 Public Bill Committees

[Greg Smith]

I understand the hon. Gentleman’s point about umbrella companies. He almost tempts me to get on to one of my hobby horses, which is IR35, but that would be way out of scope, so I promise not to go there.

My principal point is that there are always unintended consequences. And yes, in some respects, while acknowledging the reality of the contribution that small businesses make to our economy and their ability to meet a heavy regulatory demand, there may have to be other steps around that to prevent the further perverse incentives that the hon. Gentleman mentions. But I come back to my central argument: if we clobber small businesses down, there will be fewer jobs, and small businesses will not be growing, which means that the whole UK economy is not growing. His Government purport to want to see the economy grow. The Budget flew in the face of that, but, if we take as read the desire of all Members to see a growing economy in the United Kingdom, we cannot have that without small business, medium-sized enterprises or, frankly, the self-employed.

Let us not forget that, as we came out of the 2008 crash and through the coalition years, a huge part of economic growth came from the growth of self-employment, which led to those self-employed registering as companies, growing and—many of them—being a huge success story. If the Bill has the unintended consequence of reducing the incentive for entrepreneurs to set up on their own, start a business and employ people, that is a very unhappy place to be.

[Michael Wheeler (Worsley and Eccles) (Lab)]

I refer the Committee to my declaration in the Register of Members’ Financial Interests and my trade union memberships. When the shadow Minister listed the groups upon whom growth depends, he seemed to miss a rather large group—the workers. Does he accept that the purpose of the Bill is to create good employment and valued workforces? As we heard in evidence, good employment and valued workforces lead to increased productivity. Opposition Members are often keen to refer to the cumulative burden. As we are now on their fourth or fifth amendment, all in the same vein—about excluding millions of workers in this country from the benefits of the Bill—does he accept that the cumulative effect is to create a set of wrecking amendments that will remove the benefits of this Bill from millions of people in this country?

[Greg Smith]

The hon. Gentleman makes his point well, but I fundamentally disagree that these are in any way, shape or form wrecking amendments. Where we have common ground and where we do agree is that, of course, no business is anything without its employees—the people who actually do the work. However, where I think he and I may disagree, and I do not want to put words into his mouth, so I invite him to intervene on me again if I get this wrong, is about the person who has risked their capital—who has either borrowed money or risked money to have to start that business— who runs that business, who is the director of that business, being as much a working person as everybody else within it. Businesses only exist because of human beings—before our AI overlords come in and take over everything, way into the future. Of course, workers are at the hub of that, but the people who run the businesses are as much working people as everybody else.

To come back to the central point, there will be no workers, or fewer workers, if there are not people to actually employ them in the first place. If the Bill’s unintended consequences are that SMEs—and perhaps larger businesses, but to be frank, it is more likely to be SMEs—are disincentivised from taking people on, disincentivised from growing their workforce, I do not think anybody will be happy.

[Michael Wheeler]

The shadow Minister invited clarification and an intervention. I do not think that anyone is disputing some of what he says, though we will dispute much. In the context of the Bill, he talks much about, as he put it, the mounting burden, but with little evidence—though he seems to quite like evidence when referencing the RPC. Does he accept, though, that the fundamental principle of the Bill is a rebalancing within the economy between workers and their employers, that nothing in it goes beyond that, and that some rebalancing is actually needed within that relationship for growth across the whole economy?

[Greg Smith]

I understand the hon. Gentleman’s point. Of course, it is no surprise that a Labour Government would seek to bring in such a Bill. We knew it was coming; it was in their manifesto. We will come to the question of whether they really needed to rush this out in 100 days, given the number of Government amendments that we will consider later. It is, by definition, a rebalancing, and I hesitate to say this for perhaps the fourth, fifth or sixth time, but this process is about kicking the tyres.

I welcome our debate in Committee. The point of a Bill Committee is to go through provisions in far more detail than we can on Second Reading in the main Chamber, or even on Report or Third Reading further down the line. Even if Conservative Members would not have gone about making changes in this way, we need to be certain that the Government of the day succeed in their aims. The Labour party has a mandate to govern the country and we want to be a constructive Opposition. Although we might not agree with everything that the Government do—or maybe nothing that they do—it is in the country’s interest that they succeed. Therefore, kicking the tyres on the Bill and ensuring that unintended consequences are ironed out in Committee is a good debate to have and a fundamental purpose behind why we will all will spend our Tuesdays and Thursdays together through to the end of January.

--- Later in debate ---

[Michael Wheeler]

I appreciate that the shadow Minister has said that it is a probing amendment. I wish it was not quite so ridiculous, in all honesty—it is an utter low ball—but I will speak to it and to the clause it seeks to amend.

[Greg Smith]

I know the hon. Gentleman is new to the House, but sometimes one has to be a bit ridiculous to prove a point and to get answers. Does he agree?

[Michael Wheeler]

Well, I agree on my newness, and maybe as I gain more experience, I will encounter more ridiculousness in this place than I already have—in fact, I am sure I will. I wish to speak to the amendment, despite its probing nature. In my view, and I hope the Minister would agree, the clause is designed to promote stability and financial security for those who currently lack it because of the number of hours that are baked into their contracts. To set the bar as low as two hours would run counter to that purpose.

The measure has been widely trailed and debated in the run-up to the election and in this Committee. I highlight a few things that I hope the Minister will speak to with a view to that purpose. I hope that we would all agree that tackling the insecurity that millions of people in our economy face is a worthy aim, and that that is not limited just to those on zero-hours contracts but includes those on low-hours contracts who regularly work more than their set hours.

I spoke of a rebalancing earlier, and that is about fairness and the quality of employment. As part of that, it is only right that, where need is demonstrated, employees are offered—not given; there is still an element of choice—the opportunity to have those hours baked into their contracts, as is set out in the Bill. That would improve their financial security, their work-life balance, the predictability of their hours, and their ability to live their lives, to which their income is incredibly important.

I am looking forward to hearing the Minister roundly reject this amendment, but I also want him to address some other parts of the clause, specifically the inverse of the amendment, the phrase,

“not exceeding a specified number of hours”.

I hope we would want to see this measure apply to as many workers—

[Sir Ashley Fox]

The hon. Gentleman spoke of the need for employees to have stability and security, but would he not agree that the Bill causes great instability and insecurity for many small business owners precisely because it is so vaguely and badly drafted? The Government have submitted 109 amendments of their own. There are two new schedules and large parts of the Bill that have been left to be amended by future regulations. The Minister spoke earlier about the probation period, but we do not know how long that will be. What is a low-hours contract? It has taken the Opposition to say, “How about two?”—a ridiculous number, we admit—to show that there are enormous parts of the Bill that are not properly drafted. Would it not be better for the Government to just take this Bill away and start again?

[Michael Wheeler]

I would not agree, which will not surprise the hon. Member. I gently suggest that the number of Government amendments will possibly provide the clarity that he asks for—they will be baked in, and will provide that clarity. This is part of the process of getting the provisions right for all involved. I would suggest that it reflects exactly the opposite of what the hon. Member suggests.

I return to the point about stability and instability. If the basis of the provision is to have hours regularly worked included in contracts, having that contractual term would provide not only stability for the employee, but predictability and stability for the employer. I am sure we can agree that stability all round is beneficial.

However, I come on to possible unintended consequences. The term,

“not exceeding a specified number of hours”,

could do with some clarity, in order to provide that stability and to ensure that the measure applies to the widest number of people within our workforce, to fulfil the intended aim. There is also the phrase “regularity”. Will the Minister consider how to clarify that term to provide the clarity that we would all welcome? Finally, I come on to the term, “excluded worker”. As I have said, we want to see as many people as possible covered by the Bill, so that they feel the benefits of it. The provisions are measured, for both workers and employers. I would welcome the Minister’s commitment to consider those points, as well as his roundly rejecting the ridiculous premise on which the amendment is based.

[Justin Madders]

I am grateful to the shadow Minister for clarifying that this is a probing amendment, and possibly also that it is a ridiculous amendment, although I am not sure that that is the best way to persuade us to accept it. He will not be surprised to hear that we will not accept it.

An important point has been raised, and my hon. Friend the Member for Worsley and Eccles has asked a number of questions about what the amendment is trying to achieve. As I understand it, the amendment would mean that only workers on zero-hours contracts or arrangements, and those with two hours or fewer guaranteed per week, would be covered by the regulations. It would also remove the power to make regulations setting the maximum number of hours for those low-hours contracts to be in scope of the provisions.

The low-hours concept will be crucial in determining how many workers end up in scope of the right to guaranteed hours. That is partly intended as an anti-avoidance measure, to prevent employers from avoiding the duty to offer guaranteed hours by moving a worker on to a contract guaranteeing a very small number of hours. I think we can all see that, if the shadow Minister’s amendment were accepted, we would soon be talking in the lexicon about two-hours contracts, rather than zero-hours contract, and that would not deal with the questions of stability and security that we are trying to address.

We will consult on what we mean by low hours. We think it is very important to get this point absolutely right, and we understand that pitching it at a level that works for both the business and the worker will be absolutely critical. We are committed to working in partnership.

We are looking to clarify the provision in regulations. We understand that there are arguments about the detail being in the Bill, but the counter-argument is that putting the details in regulations gives us more flexibility to review the provisions as we move along. It is fair to say that we do not expect the number to end up being two hours. I do not think there has been any evidence put forward for that.

--- Later in debate ---

[Greg Smith]

This is the last group of Opposition amendments for a little while. Amendments 143 and 144 would specify the length of the reference period as 18 months. The RPC, which was widely referenced in the first set of amendments, has said that the Government have not justified why they are pursuing—

[Michael Wheeler]

Will the hon. Member give way?

[Greg Smith]

That was quick, but go on.

[Michael Wheeler]

It is a quick intervention: I am just wondering whether the amendment’s reference to 18 months is another example of the ridiculousness that we were talking about.

[Greg Smith]

It is certainly probing. Like earlier amendments, it is intended to spark debate so that we can understand where the Government sit on the issue, what is coming down the line and what businesses can expect in the real world once the Bill receives Royal Assent at some point next year.

The last Conservative Government removed exclusivity clauses in zero-hours contracts, tackling those contracts that were potentially exploitative. The clause that the amendment seeks to amend is based on the flawed assumption that employers will exploit their employees and that all the power in the relationship lies with the employer. There is no doubt that some do, but the Opposition do not hold the presumption that all will. Those that do should be challenged, but the vast majority do not seek to exploit their employees.

The London School of Economics has found that zero-hours contract jobs have 25% more applicants than permanent positions in the same role. That flexibility is clearly sought after by employees. The author of the study said:

“Policymakers should be cautious with how heavily the use of zero-hours contracts is regulated.”

The RPC has asked the Government to clarify the likelihood that the Bill’s provisions on zero-hours contracts will increase unemployment and worklessness, and how far that risk is mitigated by zero-hours contracts remaining potentially available. I would be grateful if the Minister clarified the extent to which they will remain available. What is his view on the impact that the policy will have on workers who might like to work fewer than the guaranteed number of hours a day? Some people may desire that.

We believe the legislation should include the exact length of the reference period. I accept Government Members’ point about the 18-month figure, but as I said to the hon. Member for Worsley and Eccles, it is about triggering a debate, kicking the tyres and getting to a reasonable but considered position on what the reference period should be. The Opposition’s point is that we should know what it is. It is not just politicians in this House and the other place who need to know, but the real businesses, entrepreneurs and drivers of our economy who employ real people. They need to understand what the legislation is going to specify and what the rules are by which they are going to have to play the game.

Employment Rights Bill (Sixth sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 3rd December 2024 Public Bill Committees

[Sarah Gibson (Chippenham) (LD)]

As I am sure the Minister knows, the Liberal Democrats as a group are convinced that a lot of elements of this Bill go a long way towards strengthening workers’ rights. There is no doubt about that. However, when I see these amendments and listen to the comments of Opposition colleagues, I am constantly concerned about what I am beginning to see as the plight of small and medium-sized businesses that are not being taken into consideration. This amendment alone is hugely complicated to understand. I have visions of contractors and small businesses in the construction industry in my constituency, who quite often are the employer, coming home after a long day’s work to do the admin side of their business and trying to unravel this. I highlight the construction industry because fixed-term contracts for employees are not only common, but incredibly useful. Building projects—like this one, with the works we are doing here—do actually come to a finite conclusion, and a fixed-term contract is therefore appropriate. I express my continuing concerns about this matter and some of the other amendments in connection with small businesses.

[Michael Wheeler (Worsley and Eccles) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I will speak to these Government amendments collectively, because although they are incredibly technical, we must not lose sight of their purpose, which is to promote good employment. If there are loopholes and readily available routes by which employers can avoid the measures laid out in this Bill, we will see good employers undercut and workers not feeling the benefits. I welcome this as part of the Government doing their job to strengthen the legislation by introducing well thought out amendments to close loopholes and ensure that it is as strong as it can be. I commend this and the other amendments as being not simply technical—although they are—but part of what really gives the Bill teeth in achieving its purposes.

[Sir Ashley Fox (Bridgwater) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I would like the Minister to deal with these points when he concludes, because I am concerned about the effect of an amendment that is as complicated as Government amendment 12 is on the small businesses that make up the bulk of business in my constituency. They will not have the benefit of an employment lawyer, such as the hon. Member for Gloucester, and they will not have an HR department. I ask the Minister to glance at the wording of the amendment and imagine that you do not spend your day job in a solicitor’s office, or a trade union office, or perhaps in the Palace of Westminster. You are wondering whether to employ someone and then you read that

“it is to be presumed, unless the contrary is shown, that it was not reasonable for the worker’s contract to have been entered into as a limited-term contract if the work done by the qualifying worker under the worker’s contract was of the same or a similar nature as the work done under another worker’s contract under which the qualifying worker worked for the employer—

(i) where the period in question is the relevant reference period, during that period;

(ii) where the period in question is the offer period, during that period or the relevant reference period;

(iii) where the period in question is the response period, during that period, the relevant reference period or the offer period.”

There are all sorts of technical legal terms used. The point is that you want this to apply to all small businesses, no matter how small—whether they have one, or two, or three employees. This point applies generally to the Bill. When the assessment of the Bill put the costs at £5 billion, the majority of which would fall on small businesses, I think it had exactly this sort of legal gobbledegook in mind. Very small businesses are going to have to deal with this, and they will probably not be able to understand it.

--- Later in debate ---

[Greg Smith]

I do understand the hon. Lady’s point. Nobody wants to see people turned away as they turn up for work, with their employer saying, “Sorry, no work today.” That is not a position that we want anybody else to find themselves in, but I am trying to make another point.

Let us take the hospitality sector as an example, which has had a pretty rough time since covid. It is one of the sectors—be it pubs, restaurants or attractions—that is struggling the most to recover from the pandemic. There are certainly times when I turn up to a pub in my constituency, perhaps on a Tuesday night, and it is completely empty and has no bookings. That is not necessarily the pub’s fault, but it will be a problem if there is an absolute requirement for the pub still to pay its full staff rota because it was full the previous Tuesday night and needed all those staff. I think this is one of those real-world examples where there has to be a little bit of flexibility; businesses have to be able to say, “Sorry, we’ve got no bookings tonight.” Worse than that, there might be the nightmare scenario that the beer delivery has not arrived and there is not actually any beer to sell.

[Michael Wheeler]

Does the shadow Minister accept that it is not the fault of the worker either? In fact, the employer has more control over the situation, on balance. On his example of planning out work, especially bookings, employers would know that there were no bookings further in advance than on the day—there are comparable examples across other industries—so giving notice of that on the day is completely and utterly unacceptable. The cost, in terms of proportion of income, is disproportionately borne by the worker, not the business, and these measures we are discussing are a proportionate way to rectify the situation.

[Greg Smith]

Fundamentally, I agree that it is not the worker’s fault either—I am absolutely at one with that. I made it very clear that I do not want to see anyone turn up for work only to be turned away and told, “Sorry, no work today.” That is not a great place for anyone to be. I absolutely understand and accept the hardship that that will place on someone who will perhaps not get that day’s wages, but I think there should be greater flexibility in circumstances where it is not the business’s fault either; those situations may be few and far between, but they will happen in hospitality, and they may happen in some manufacturing sectors where supply chain problems have occurred, as we discussed earlier.

If we force businesses into a place where they have to shell out significant amounts of money for no gain—as we discussed earlier, the workers are the ones who produce the services, goods, products or whatever it might be that enables the business to have the money in order to pay people in the first place—and we push them into a place where their low margin is eroded even further by paying for things that are completely outside their control, then those businesses may well go bust.

We are talking about the hospitality sector—and we are seeing pubs close virtually every week. That is a very sad state of affairs, particularly in rural communities, where the pub is often the beating heart of a village, or certainly the social hub. It is not just a place for a pint; pubs do a lot of social good as well. We are seeing pubs close far too frequently for all sorts of reasons, often because of the low margins and other factors that have come in—I will resist the temptation to go too hard on the Budget. There is a cumulative impact, and this measure could well be the straw that brings the whole house down. I want the Minister and Government Members to reflect on where we could bake in other forms of safeguard and flexibility, so that the Government do not put a number of businesses on to that sticky wicket.

Employment Rights Bill (Eighth sitting)

Michael Wheeler Excerpts

Committee stage
Thursday 5th December 2024 Public Bill Committees

[Laurence Turner]

I am grateful to the hon. Member for raising that point. It is a shame that our Liberal Democrat colleagues are not able to join us, because we could have an interesting discussion about the consequences of the 1919 police strike, and the promises that Lloyd George made and subsequently broke, which led to the creation of the Police Federation rather than an independent trade union, but I will not detain the Committee on that matter. I will just say that we are operating under the international framework for employment law, which sets out very clearly that there are exemptions to the normal right of freedom of association—let us call it what it is—and that includes industrial action. I do not think that the Bill is the right place to diverge from that international framework.

I had reached the end of my points. As I say, there are good national security reasons for rejecting the amendment.

[Michael Wheeler (Worsley and Eccles) (Lab)]

It is, as ever, a pleasure to serve under your chairmanship, Sir Christopher. As this is my first time speaking today, I draw everyone’s attention to my declaration in the Register of Members’ Financial Interests and my trade union memberships. I want to pick up very slightly on some of the points made by my hon. Friend the Member for Birmingham Northfield.

I fully appreciate that we are talking about a probing amendment. I will not revisit my use of the word “ridiculous” on Tuesday—we stayed in that territory for long enough—but the shadow Minister perhaps underestimates the ability of different sectors to accommodate flexible working and to overcome the challenges that he believes the flexible working measures in the Bill might present. In fact, GCHQ already operates a flexible working policy. On its website it is proud to point out that

“Work-life balance is important to us”

and that its

“flexible working patterns…are designed to help work fit… alongside…personal lives.”

If anything, exclusions for entire services sectors would be a retrograde step in places where flexible working provisions are already working perfectly well.

Moving on to the broader point, as demonstrated, I believe that sectors, businesses and employers can cope with this change. There are adequate measures for reasonableness in the Bill. Access to flexible working is an incredibly important right for workers in a modern, evolving workplace. Measures such as these gear the world of work for the future by enabling people to enter the workforce and to stay in it—something that the shadow Minister has expressed a concern about. Anything like this amendment that would exclude sectors, groups or organisations wholesale feels unnecessary, especially in the light of how the measures would work in practice.

Employment Rights Bill (Ninth sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 10th December 2024 Public Bill Committees

[Michael Wheeler (Worsley and Eccles) (Lab)]

I refer the Committee to my declaration in the Register of Members’ Financial Interests and my membership of trade unions. It seems that my thoughts align with those of my hon. Friend the Member for High Peak on the reasonableness of completely unforeseeable and unexpected things, but I would go a slight step further on what we are looking for from employers.

Even in circumstances in which something is so completely unexpected and unforeseeable that it might be reasonable for preparatory measures not to be in place, the duty would also address how employers respond. It is about having systems in place to react to incidents when they happen, rather than foreseeing every possible eventuality of the completely unexpected and unforeseeable. We can have supportive measures in place to prevent harassment from continuing or from happening again, and to support the individual.

[Greg Smith]

I understand the hon. Gentleman’s point. I broadly agree, but my challenge to him is that reasonableness can be interpreted in many different ways. There will always been an appeals process or something similar, but I worry that unless the legislation is clearer, some good-willed employers who are entirely honest and decent in how they try to protect their staff could, in some circumstances, be on a very sticky wicket trying to defend themselves against something that they never foresaw or dreamed of. They may have been a little too innocent, but they will find themselves in a difficult spot. That is where safeguards need to be locked into the legislation in respect of what is a very subjective test.

I was about to come on to an example. I will preface it by saying that absolutely nobody should be abused in the workplace and absolutely nobody should face any form of harassment in the workplace. However, let us think for a moment about how some of the Bill’s provisions would operate in an NHS accident and emergency department. In any A&E up and down the land, our wonderful doctors and nurses sometimes put themselves in harm’s way, particularly late at night. Perhaps they have a patient who is clearly inebriated but has injured themselves. I am not excusing it for one second, but it can and does happen. Let us say that an incredibly drunk patient, who may have fallen and broken their hand, verbally abuses—not sexually harasses—the doctor or nurse treating them. The doctor or nurse does not deserve that, and that behaviour should not be happening, but I would wager that it happens most Friday or Saturday nights somewhere. It is unacceptable, but it does happen. What should happen in that circumstance?

Employment Rights Bill (Tenth sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 10th December 2024 Public Bill Committees

[Anneliese Midgley (Knowsley) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I refer the Committee to my entry in the Register of Members’ Financial Interests and my membership of the GMB and Unite.

I want to bring this debate into reality—after all, the Bill seeks to affect real people’s lives and make their life at work better—and talk about my personal experience as a young woman. I was working a couple of jobs to get by, one of them as a silver service waitress on a zero-hours contract and minimum wage. The employer hired only young women, and we worked mostly at high-profile sporting events. To be sexually harassed was seen as normal. We were told to expect it, and we were told that we were expected to accept it—it was part of the job. The employer would also over-hire, so too many of us would turn up and many of us would be sent away, because it was decided that our face or figure did not fit the event that day. Those of us who got to the service were groped, propositioned, reprimanded if we talked back, and threatened with the sack. Travelling home from work together, we would feel completely humiliated and degraded, and we would exchange tales of what had happened to us that day. We took solace in the fact that we were not alone.

That behaviour is not something we should accept, but we know it still happens. That is why this part of the Bill is so important. No one should go to work dreading being harassed. As my hon. Friend the Member for Gloucester pointed out, the Fawcett Society has said that

“40% of women experience sexual harassment throughout their career.”

The Bill is intended to prevent workers from being subject to that vile behaviour, and it will ensure that people can get on with their jobs without being filled with fear, dread or humiliation, or feeling unsafe and degraded.

[Michael Wheeler (Worsley and Eccles) (Lab)]

I did so this morning, but I draw attention to my entry in the Register of Members’ Financial Interests as a member of the Union of Shop, Distributive and Allied Workers, as it pertains to some what I will say.

First, I want to take us right back to the beginning of the debate, if we can remember that long ago. The shadow Minister referenced the Regulatory Policy Committee’s assessment, in particular on the need for clauses 15 and 16. I strongly welcome what the Bill is doing in this space, in particular on third-party harassment. I do not profess to be an expert in the procedures and mechanisms of the RPC, but if we look broadly at society and at surveys and analysis of the state of work and what workers go through in this country, I think there is ample proper evidence of the need for these clauses.

I draw the Committee’s attention to this year’s “Freedom from Fear” survey released by USDAW, which surveyed retail workers in this country. It is an annual survey and the figures were released as part of Respect for Shopworkers Week in November. It featured responses from 4,000 participants, and the interim results showed that 69% of respondents—69% of a sample of 4,000 retail workers—had been verbally abused while at work, not by colleagues but by customers: a third party. Forty-five per cent had been threatened at work while simply going about their job. That is just one survey of one sample of one sector in our country that demonstrates the need for clauses 15 and 16.

On Opposition amendment 131, I must admit that I was slightly confused, but I was listening closely and I gathered that its thrust was primarily around free speech. We have talked a lot about unintended consequences in this Committee. I suggest that, whether it is intended or unintended, the consequence of the amendment, which would remove two entire sectors from the scope of the Bill, would be far too broad given the protections that are needed. That is particularly the case in the hospitality sector, and we have heard my hon Friends’ experiences of that sector. I question whether the amendment is at all proportionate, considering the overall aims of the Bill, as well as the experiences and evidence that we have heard from my hon. Friends and witnesses.

[Sir Ashley Fox]

Does the hon. Gentleman agree that the fact that the Government have not undertaken an impact assessment on these measures makes it very difficult to know whether the amendment is proportionate, and that in fact our amendment 135, which states that these provisions should not take effect until after the impact assessment has taken place, is an entirely sensible proposition?

If I may make a second point, Mr Stringer, on the issue of harassment at higher and further education colleges, one can quite imagine a situation where students put forward a point of view—perhaps on gender critical subjects, on which a lecturer or employee has particular strong views and students have other strong views—that could easily result in a charge of harassment by a third party. That is not what should be happening at our higher education establishments. We should encourage free speech. We should encourage students to express themselves forcefully but respectfully, and we should not see that resulting in what I would regard as spurious legal cases.

[Michael Wheeler]

As I said, I listened closely to the points that Opposition Members made. Like my hon. Friend the Member for Gloucester, I will allow the Minister to come back on the specifics of impact assessments. The point I am trying to make is that we are all looking at the same Bill and the same information. We might desire more information at this point, but we are exercising our judgment. Regardless of the specifics of any impact assessment, I think it is patently obvious that it is a disproportionate response to the concerns raised by Opposition Members to exclude entire sectors from the protections that we are discussing.

On hospitality, we heard in oral evidence from the trade union Unite—of which I am not a member—that it had surveyed its hospitality workers and found that 56% of them had considered leaving the sector entirely as a result of the sexual harassment they were experiencing. We have heard throughout the debate about the desire to support businesses. We heard from UKHospitality about struggles with retention and how measures in the Bill, outside of this one, will aid with that. I hope we can all agree that, beyond edge cases that might raise concerns, the significant protections for workers that we are discussing would be not only good for those workers, but fundamentally good for business.

[The Minister for Equalities (Dame Nia Griffith)]

We have had a full and thorough debate, and I thank my hon. Friends—in particular my learned hon. Friends the Members for High Peak and for Gloucester—for making many valuable arguments, and everybody for contributing their personal experiences.

I remind the Committee that clause 15 requires employers to take all reasonable steps to prevent sexual harassment of their employees. Including “all” emphasises the thorough approach that employers must take; at the same time, the requirement remains limited to steps that are “reasonable”. The concept of “all reasonable steps” has the advantage of being well established and familiar to employers and employment tribunals. That is a really important point, because the clause clarifies and makes things easier and more straightforward, rather than complicated and burdensome, which is the implication of some of the amendments.

I thank the hon. Member for Dundee Central for speaking to new clauses 39 and 40 tabled by the right hon. Member for Dwyfor Meirionnydd. I pay tribute to the right hon. Lady for her work on violence against women and on stalking, and indeed to the work of her predecessor on stalking. I reassure the hon. Gentleman and the right hon. Lady that the Government entirely support the importance of ensuring that workers, including women and girls, are protected from workplace violence and harassment. There is already in place a strong and appropriate regulatory regime that provides protection to workers from violence and harassment. If the hon. Gentleman so desires, I will ask the Health and Safety Executive to write to him on that point.

--- Later in debate ---

Let us test the issue with real business and real industry; let us take the evidence we already have and try to come to a more proportionate view that will not cost the labour market and the British economy jobs. I genuinely cannot believe that anybody wants to create an environment that makes businesses more reticent to employ, companies less likely to grow their workforce, and our great industries less likely to grow. Given the evidence we have heard so far, I fear that that is unfortunately going to happen.

[Michael Wheeler]

I thank the shadow Minister for giving way, and I will keep my intervention short, Mr Stringer. We are hearing a lot of grandiose threats when it comes to the economy, and I would like to drag us back to the specifics. This measure is not a ban on dismissal; it is not even a protection from dismissal. It is a protection from unfair dismissal, so it is quite narrow. It still allows for dismissal, disciplinary procedures and all of that. Does the shadow Minister have a timeframe in which he thinks it would be acceptable for workers to be unfairly dismissed?

[Greg Smith]

The hon. Gentleman is right about the unfair dismissal point. Nobody wants to see anybody unfairly dismissed, but it is impossible to see each measure in the Bill in its own silo or its own column; each is part of the cumulative impact of many measures reverting to day one rights. So, too, is the measure before us, and the Committee has heard direct evidence from representatives of real businesses out there that it could have a damaging effect.

I am not arguing against the principle of what the Government are trying to do here—to protect workers against unfair dismissal. I am trying to test the waters on the operability of the Bill, and on the unintended consequence that it may have in terms of overall numbers in the job market and the rate at which companies out there make new hires, or indeed choose not to. It is a worthwhile exercise for the Committee to really test these things to see how this measure will work out in practice.

Employment Rights Bill (Eleventh sitting)

Michael Wheeler Excerpts

Committee stage
Thursday 12th December 2024 Public Bill Committees

[Greg Smith]

Of course there will always be some who look for loopholes, but I gently suggest that the vast majority do not. They are good employers who care for their workforce, because, as we have discussed many times over, no business is anything at all without both parts—the workforce and those who risk their capital and so on to make those jobs happen, and to produce the products and sell the services in the first place.

The intervention from the hon. Member for Dundee Central neatly leads on to where I was going anyway. The Committee heard from almost every witness who was an employer or who represented employers that the dismissal and re-engagement provisions in the Bill were already too restrictive and would lead to staff being laid off. The SNP amendments make those even more restrictive, so it is not hard to work out where those witnesses would have gone on this front. Given that risk of lower employment and higher unemployment, I gently ask the hon. Gentleman to consider how the SNP would actually answer that challenge were the amendment to go through.

[Michael Wheeler (Worsley and Eccles) (Lab)]

As ever, it is an absolute pleasure to serve under your chairmanship, Ms Vaz. As usual, I draw the Committee’s attention to my declaration in the Register of Members’ Financial Interests, and particularly to my membership of the USDAW and GMB trade unions.

I am sure it will not surprise the hon. Member for Dundee Central to hear that I share some of his concerns about the practice of fire and rehire, and I welcome the significant steps taken in the Bill to outlaw the practice. However, I disagree with his amendment 160. What might be seen by some as a loophole is actually an important safeguard against the perverse potential for the law to mandate redundancy when there might have been other options on the table. I am sure that none of us would want to be party to including that in the Bill.

As I said, I share some of the hon. Gentleman’s concerns, and I hope the Minister will look closely at proposed new section 104I(4) of the 1996 Act, because the words

“likely in the immediate future”

are doing some precariously heavy lifting. However, if the amendment were accepted, the focus on a business being a going concern, which is the most important part of that subsection, would be removed completely. When we are passing legislation that protects jobs and promotes good employment, we absolutely cannot allow the unintended consequence of mandating redundancy when there are other options.

I look forward to the Minister’s comments. I understand the concerns of the hon. Member for Dundee Central, but this is a sledgehammer of an amendment to crack a nut of a possible loophole, with significant potential consequences.

[Laurence Turner]

Like my hon. Friend, I have intense sympathy with many of the arguments put forward by the hon. Member for Dundee Central, but the “Make Work Pay” document published earlier this year, which was subsequently endorsed in the Labour manifesto, stated:

“It is important that businesses can restructure to remain viable, to preserve their workforce and the company when there is genuinely no alternative, but this must follow a proper process based on dialogue and common understanding between employers and workers.”

We all want to see both parts of that carried through, and I look forward to the Minister’s comments on that. If amendment 160 were accepted, would it not have the effect of invalidating that part of the Government’s manifesto commitment?

--- Later in debate ---

[Michael Wheeler]

It will come as no surprise to my hon. Friend that I agree with him. It is important that we keep our focus on the reality of work and the need to provide workers with protections and good-quality employment. The Bill has been brought forward in the context of “Make Work Pay” and the “Next Steps” document, and I look forward to what I am sure will be illuminating comments from the Minister.

[Sarah Gibson]

I thank the hon. Member for Dundee Central for tabling the amendment, which has drawn out a potential loophole that I hope the Government will look at carefully. We so often see legislation introduced with good intentions, and then 90% of businesses—especially smaller businesses—comply with it to the letter, because they think that is the right thing to do, but the larger corporations find a way around it.

Employment Rights Bill (Twelfth sitting)

Michael Wheeler Excerpts

Committee stage
Thursday 12th December 2024 Public Bill Committees

[Greg Smith]

I am grateful to the hon. Gentleman, although he was possibly milking it with the length of that intervention—[Hon. Members: “Oh!”] It is nearly Christmas.

I accept the hon. Gentleman’s points about some of those very outdated provisions. I really hope that my children do not find a job out there that involves free milk, because they might jump at it a little too quickly. This probing amendment seeks simply to understand a little further where the flexibilities lie, and to get underneath some of the detail around when a variation of contract might be a good thing on both sides, or when things have just changed and there needs to be a variation in order for the jobs to be saved. I would hope that Members on both sides of the Committee would come at this from the perspective of the real world and wanting to save jobs, create more jobs, grow the economy and grow employment.

There may be legitimate reasons for wanting to vary terms and conditions, such as to provide for improved employment practices, or to update and reform outdated working practices—as the hon. Member for Birmingham Northfield referenced—in order to allow for the more effective running of a business or organisation. The amendment seeks to understand the Government’s position should such a situation arise, and to understand why they are legislating to prevent businesses from acting in such a way.

[Michael Wheeler (Worsley and Eccles) (Lab)]

On a point of clarity, is it the purpose of the amendment or an unintended consequence of the drafting that it would completely delete the subsection, rather than adding to it? If the purpose is to completely delete the subsection it is amending, are Opposition Members trying to remove the protections for those going concerns?

[Greg Smith]

The hon. Gentleman asks a perfectly legitimate question. I repeat that this is a probing amendment: we are not going to press it to a vote or try to put it in the Bill. The purpose behind it is to get the evidence base, the justification and some clarity of thought from the Government about why the clause is necessary and proportionate. Sometimes we have to suggest getting rid of something to get a good example or a good justification for going there, doing it and putting it in primary legislation.

The Opposition certainly do not want to see exploitative fire and rehire in any workplace. From talking to businesses, and from the evidence we have heard, we know that there needs to be solid grounding and an evidence base to show that the wording in the Bill is justifiable and does not justify shutting down many businesses that are growing, adapting and changing—hopefully, for the better, so they are more successful. They should be able to keep and grow their staff, rather than go down the redundancy route or other scenarios whereby jobs are lost.

Matthew Percival from the CBI said:

“In the fire and rehire proposals, there is a risk that we might be making it easier to make people redundant than to change contracts”.––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 7, Q1.]

That is the absolute nub of the matter. It would be nothing short of a total disaster if the unintended consequence of the exact wording of the clause or the Bill perversely incentivises companies to make people redundant, so people lose their jobs and have to go home and have that difficult conversation with their loved ones and say that they need to find a new job, with the devastation that that brings to real people’s lives. I cannot imagine that the Government want that to happen. With this probing amendment, we are seeking to kick the tyres. We want an explanation, or at least to encourage the Minister and the wider Business and Trade team to find a better way that does not have that unintended consequence.

A recurring theme of our debates in recent days, and from the Bill Committee witnesses—other than trade union representatives—is that the measures in the Bill on dismissal and re-engagement will be too restrictive for employers. I gently ask the Minister to reflect on that and think about whether the measures will actually work and will not have unintended consequences, so that people’s jobs are protected and saved. We do not want people to be unintentionally forced down the route of job losses.

[Michael Wheeler]

I agree with the comments of my hon. Friend the Member for Gloucester. I appreciate that this is a probing amendment, but I want to talk to its specifics. It appears to me that there are plenty of consensual mechanisms for achieving most of what the shadow Minister is suggesting about the variation of contracts to reflect working practices. If anything, they are inherently better than anything that is imposed. Quite often, when working practices, organisations and business practices are modernised, communication between those doing the work and the managers and owners leads to a much better outcome.

I suggest that we need to remember that we are talking about fire and rehire, which is inherently quite extreme. The amendment seems to refer to the particulars of normal working practices, looking at updating mechanisms to account for modern technology and suchlike, that are much better handled by the existing consensual mechanisms. While I appreciate that it is a probing amendment, it seems entirely unnecessary and does not necessarily speak to the heart of what the clause is about: ending the extreme practice of fire and rehire.

--- Later in debate ---

[Greg Smith]

Indeed, we know from their declarations of interest that they all are. I hope the Minister takes the question with the good intent with which it is asked. Not everybody is in a trade union and not everybody organises in that way, so how would the mechanics of the measure work in those circumstances?

That leads to the wider question, “Why 20?” Why not 19, 18 or 15? Why not 25? It seems like an arbitrary number. I accept that a number needs to be put down. In some ways, in specifying a number, this clause is more detailed than most in the Bill, and it gives certainty, but I would like to understand why it is 20. It seems like a number picked from thin air. It could negatively impact an organisation if it led the employer to decide, “Well, we’ll just get rid of 19 of them, and we won’t have to comply.” That seems at odds with the other provisions in the Bill, where the Government seem to want to move all rights back to day one, yet they do not seem to want to apply that to organisations where, for whatever reason, 20 people are, sadly, being consulted on being made redundant. I would like clarity on that point.

[Michael Wheeler]

I will keep my contribution relatively short, but I did not want to let the clause pass without warmly welcoming its inclusion in the Bill. In a previous life, I worked to represent shop and retail workers. While P&O and the scandal of fire and rehire entered the collective consciousness, the Woolworths redundancy situation was burned into the consciousness of the workers I represented at that time. That is exactly the loophole that this measure is trying to close. Thousands of workers affected by the Woolworths redundancy missed out on the compensation they deserved as part of the lack of consultation because they worked in individual establishments that were small and fell below the threshold. The interpretation of the law at that point meant they were isolated, divided and not included as part of what was clearly, to everyone—

[Greg Smith]

Perhaps I can test the hon. Gentleman a little bit on that. I remember many happy hours as a child in Woolworths in the town where I grew up. They were fantastic stores, and they are greatly missed. Given where he is coming from, is he content with the number being set at 20? While Woolworths was a substantial business, I can think of smaller businesses with separate sites, retail outlets, pubs, restaurants or whatever that might employ 19 or 15 people.

[Michael Wheeler]

The hon. Gentleman invites to me to say whether I am content. I draw his attention to the fact that the clause removes the single establishment loophole while leaving in place the thresholds that are already part of the law around consultation and the time period. I have not examined and, despite the invitation, I will not speculate on where those thresholds should be, but I warmly welcome the removal of the single establishment loophole, so that where the numbers in a redundancy cross those thresholds—legitimately and apparently to everyone looking at it—there are not legalistic mechanisms for those workers to be left out.

Having warmly welcomed the removal of the loophole, let me reassure the shadow Minister. In a previous, previous life I was in a different job—we have all had many jobs—where trade unions were not recognised. I speak for myself alone when I say that I would love for every worker in this country to have the benefit of trade union representation. I confirm for the shadow Minister that I would love to see that, because I think it has genuine benefits.

[Greg Smith]

Not a surprise.

[Michael Wheeler]

I am sure it is not. I worked in a retail establishment that did not benefit from trade union representation and that went through consultation, not on redundancy but on a variation of contracts, so it is relevant to what we were talking about before. It was actually a relatively smooth and easy process for employee representatives to be appointed and elected from among our number, despite the lack of an existing structure, and to engage with the company in those consultation exercises. While I would love there to be a trade union fighting the corner for every worker, when it is absent it is not a burdensome process to have employee engagement in these processes.

[Justin Madders]

I recognise that the shadow Minister welcomed the clarification I provided. No doubt there will be debate to come, as is often the case with legal issues, but the Government are fairly clear and confident that the clause will not have the unintended consequences we heard raised in evidence.

The shadow Minister asked, “Why 20?” He will pleased to know that that was a product of EU regulation. It is in existing law as part of the Trade Union and Labour Relations (Consolidation) Act 1992, which has been amended many times, so I could not say exactly when it came into force, but—

Employment Rights Bill (Fourteenth sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 17th December 2024 Public Bill Committees

[Sarah Gibson]

Will the hon. Gentleman give way?

[Michael Wheeler (Worsley and Eccles) (Lab)]

Will the hon. Gentleman give way?

[Greg Smith]

I will give way to the hon. Lady first.

[Greg Smith]

I think the hon. Lady has potentially misinterpreted my remarks. I am not directly conflating the pay of staff with the educational outcome: I am saying that there are academies that may well be able to structure their own affairs in the way they recruit, pay and set terms and conditions so that that is actually more favourable. That is one of those fundamental freedoms that make academies—and free schools, for that matter—different and able to offer the diversity that we both seem to celebrate, particularly in supporting those children who need additional support to whatever degree in that setting. Someone else was waving at me a minute ago.

[Michael Wheeler]

I am more than happy to wave in a friendly manner in this festive sitting. As usual, I draw attention to my declaration in the Register of Members’ Financial Interests of my membership of the GMB and USDAW. We have heard the phrase “academy freedoms”, with a lot of emphasis put on freedoms. We have also heard the Minister confirm that diversity is not being lost in terms of educational choice. We have heard that teaching assistants, according to the Low Pay Commission, have unfortunately been defined as low-paid workers. Does the hon. Gentleman accept that the only “freedom” —I use inverted commas there, for the sake of the record—being lost is the ability of academies and free schools to pay poorly?

[Greg Smith]

I understand the point that the hon. Gentleman makes, but I caution him against this presumption that those academies want to pay poorly, somehow mistreat their staff or set pay rates so low that most of us would think that it was an absurdity. I am not sure that they do; I am not sure that anybody wants to pay their staff as low as they can get away with. Those academies often advertise and appeal for staff, be they teaching assistants, teachers, ancillary staff or whoever, in a manner that actually makes them more attractive than the other offerings. That is part of the freedom to set up the school in the way that they wish and to ultimately deliver the best possible outcome for the children they are teaching and preparing for their future lives.

I come back to the point that if we start stripping away the freedoms and rights of those establishments to have local control, in this case around employment, I do not see any other natural conclusion than trying to bring our entire educational establishment back into being one single style of education. There may be some on the left—I say “the left” broadly; I am not just looking at the Labour party—who would welcome going back to simply having the secondary modern or whatever it might be. To be fair to her, the hon. Member for Chippenham agreed with me on the point of diversity and choice in education. It is a huge strength and a benefit to all children in this country that we have that level of different offering and choice in our educational establishment, and it has made our country fundamentally better. For total fairness, I repeat the fact that it was the last Labour Government who introduced academies.

Employment Rights Bill (Fifteenth sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

[Michael Wheeler (Worsley and Eccles) (Lab)]

Will the shadow Minister give way?

[Greg Smith]

One moment and I will, of course, give way to the hon. Gentleman.

If unions cannot reach 10%, what is the rationale for saying, “Oh well, we’ll just lower it to 2%”? Surely, if the union cannot get to 10%, they are on a pretty sticky wicket and in a situation that one might describe as a wing and a prayer in the first place, so lowering it to 2% is exposing them further.

[Michael Wheeler]

I draw attention to my declaration in the Register of Members’ Financial Interests, in particular my membership of the GMB and USDAW.

The shadow Minister is painting a very rosy picture of reasonableness and neutrality, of businesses that sit by and allow these things to happen, and of unions that can wander around and have a nice chat and recruit people. Does he accept that the reality in the world of work is actually one of hostility, of difficulty, and the types of measures that this Bill is trying to address so as to restore the situation to an even keel?

The reality out there is hostility to recognition and trade union membership. Therefore, 10% has proven to be a high and often insurmountable barrier, and not actually reflective of the will of workers, rather than when a proper choice, in reasonable and neutral conditions, is put to them. The threshold should actually be lower, to allow the process to take place and for it not to become a tool for erecting barriers to trade union recognition.

[Greg Smith]

I understand the point that the hon. Gentleman makes and I appreciate his contribution, through that intervention, to this debate. Where I would gently push back is that there are many provisions in the Bill around allowing union access for recruitment, for example, or other things we have spoken about this morning, such as the regular reminders of the right to join—or not—a trade union. Therefore, my central argument is that to most reasonable people, 10% is still a very low bar—it is not a high proportion of anything. So, if the other provisions in the Bill still cannot allow the trade unions to have reached that very modest 10% threshold, something really isn’t working.

Whether you are a passionate trade unionist or not, it must be accepted, from the perspective of how the clause sits as part of the package of provisions in the Bill, that something much more fundamental and problematic is happening for unions to be unable to reach that 10% threshold. I do not accept the hon. Gentleman’s point that there is universal hostility. I accept that in some workplaces there is hostility; that is unquestionable and clearly something that does happen. However, I can equally think of many examples where the relationship between management and trade union may be—to put it politely—difficult, where it is still one of good will and a wish to engage, negotiate and try to come to an arrangement that works for everyone, rather than the absolute hostility that the hon. Gentleman described.

[Michael Wheeler]

I thank the shadow Minister for giving way again, because I would not want my words to be misrepresented. In no way was I suggesting that there is universal hostility; I was just talking about the reality on the ground and the way that recognition procedures are often used. Let us bear in mind that voluntary recognition agreements are a thing, so these procedures tend to be used where there is hostility. There is not universal hostility in the workplace. In fact, I worked in a union that had the largest private sector partnership agreement with a large private sector employer, and it was harmonious and beneficial for all involved, so I would not want my words to be taken out of context or misrepresented.

[Greg Smith]

I do not wish to misrepresent the hon. Gentleman in any way, shape or form, but I return to my central argument. Although I entirely accept what he says—that there are examples of hostility—and I understand why the Government wish to take measures to overrule them, it is impossible to view clause 47 in isolation. It must be looked at as part of the package of measures in the Bill. If, having become law, they still fail at some future point to counteract the problems that he talks about, there is something much more fundamentally problematic occurring, which the clause alone would not solve. I therefore ask the Minister to reflect on how he envisages the other provisions impacting the need for the clause to be implemented in the first place, particularly if an already low threshold of 10% has the potential, under the Secretary of State’s direction, to become even more absurdly low by the test of reasonability and go down to 2%.

If Members were to go to the average high street to do one of those dreaded media-style vox pops and ask, “Is 2% a reasonable threshold to allow in any of these circumstances?” I think the general answer would be that 2% is absurdly low, and that 10% is already low enough. The test of public opinion is important. I dare say that many more consultations are to come, and it is important that they tease out what is reasonable and what is not.

--- Later in debate ---

[Sir Ashley Fox]

The amendment is designed to give trade union members the right not to contribute to the political funds. Why does the Labour party want to stop them having that right? It is pure self-interest. Labour wants a conscript army of trade union members to contribute to the funds. Furthermore, I dare say that a good proportion of the political funds end up supporting the campaigns of Labour Members, who one by one in Committee have declared their membership of individual trade unions.

Earlier, we heard the Minister say that, annually, he wanted employers to remind workers of their right to join a trade union, yet he does not want those same members to have the right to opt out, or to be reminded of their right to opt out, of the political fund. I therefore support the amendment, which will assist trade union members to know that they have the right to opt in or out of the political funds.

[Michael Wheeler]

I might surprise Conservative Members by saying that I welcome the amendment. Before those on the Labour Benches start to panic, I welcome it because it is a reminder that the only place in the country where Conservative Members support increasing red tape is for trade unions.

It is always nice to follow and to be of one mind with my hon. Friend the Member for Birmingham Northfield, so I will try not to repeat too much of what he said—although I agree with it all. The shadow Minister challenged Labour Members who have spoken, but it is fundamental to point out that the analogy he drew is false. A trade union is a member-based democratic organisation designed to protect those who are part of it. It is not a subscription or an entertainment package on TV. It comes with more rights, more democratic involvement and more control over where money and resources go. A fundamentally false analogy was drawn.

We heard earlier about businesses. I gently push back on what the hon. Member for Bridgwater said; I do not think I heard the Minister say it would be an annual notice. It was up for consultation, but even one notice was described by Conservative Members as onerous. Yet here we have an amendment pushing not just for reminders but for annual reconfirmation, from people who have already given their consent to pay into a political fund, that they are happy for that to happen, as a compulsory measure. That is deemed reasonable by Conservative Members, but it is not. The amendment is a continuation of a decades-long attack on the trade union movement by the Conservative party.

[Greg Smith]

Will the hon. Gentleman give way?

[Michael Wheeler]

I was one sentence from the end, but I will always happily give way.

[Greg Smith]

Perhaps I can put to the hon. Gentleman a hypothetical scenario. If his trade union, the political fund of which he had willingly opted in to because in some cases it might support the Labour party, decided, like a quarter of Labour voters, that it regretted that political choice and now wished to go even further to the left and support the Liberal Democrats, would the hon. Gentleman wish to opt out of that political fund and have clear instruction on how to do so should that be the case?

[Michael Wheeler]

For once in this place I will give a direct answer. Yes, I would. As a paid-up member of a trade union I would know exactly how to do that. I do not need the measures in the amendment to do so. Conservative Members talk about trade union members in the hypothetical, trying to understand what they would like. Other than those of us in this place who are trade union members, I wonder how many they have ever met. As someone who worked for one in the background, I think I know the mind of a trade union member.

[Laurence Turner]

My hon. Friend and I have both helped to administer the internal democracies of trade unions. Does he agree that the caricature of trade unionists as conscripts who just do as they are told is not based on any kind of reality? There might have been times when he and I wished that was the case, but the reality is that unions are democratic organisations and no one within them takes a particular action because they are instructed to do so.

[Michael Wheeler]

It could be dangerous for me to admit that sometimes I might have wished to instruct a member, but I can reassure everyone here that the instructions flow the other way when someone is a trade union official acting at the behest of members at all times.

I was one sentence from the end before the interventions. I have been thoroughly derailed by people in this room, so I will wrap up and say that I do not agree with the amendment. I disagree with a lot of what was raised in the debate and the false analogy around subscription models versus membership of a democratic organisation. I will obviously not support the amendment.

[Justin Madders]

We have had a good debate on the amendment. It is fair to say there is a deep divide in our positions. I will address the amendment and the clause stand part debate.

Amendment 126 would make two changes to clause 48. First, it seeks to retain the requirement on trade unions to provide their members with an annual notice of their right to opt out of contributions to the political fund. Secondly, it seeks to require trade union members to opt in to contributions to the political fund annually. As we have heard, that would place substantial and unnecessary bureaucratic requirements both on trade unions and on their members. As my hon. Friend the Member for Worsley and Eccles said, this is one of those rare occasions when the Conservative party seems to be in favour of more red tape, which is clearly something that we want to see reduced.

I will start with the change that would retain the requirement for trade unions to send an annual notice to members reminding them that they can opt out of contributing to a political fund. The amendment targets the wrong section. It would amend section 86 of the Trade Union and Labour Relations (Consolidation) Act 1992, which relates to ensuring that employers do not deduct contributions through check-off from the member where the union member has opted out of the political fund or where the opt-out notice has been given but is not yet in force.

However, I will respond in terms of the spirit of the amendment tabled by the shadow Minister. The Government have been clear in our intention to repeal the Trade Union Act 2016, which was a clear manifesto commitment. We have a mandate to deliver on that. The amendment seeks to frustrate that clear intention by retaining the substantive effect of section 84A of the Trade Union and Labour Relations (Consolidation) Act 1992, as amended by the Trade Union Act 2016.

We should be clear that members are, of course, free to opt out of contributing to a political fund whenever they wish. Clause 48, which I will come to, sets out how that is possible. Currently, alongside the requirement to ballot members on the maintenance of a political fund every 10 years, trade unions must also remind their members of their right to opt out of a political fund. The Government are proposing to remove the ballot requirements. We have consulted on whether to retain a requirement for trade union members to be reminded on a 10-year basis that they can opt out of the political fund.

Employment Rights Bill (Sixteenth sitting)

Michael Wheeler Excerpts

Committee stage
Tuesday 7th January 2025 Public Bill Committees

The better regulation framework states that when a Government Department is making a policy intervention, a regulatory impact assessment should be prepared when a measure has an annual direct net cost to business of £10 million. Think about the figures we have just been talking about for the impact of strike action: if that test is £10 million, but the RMT strikes alone cost the economy £5 billion, I really do not think it is unreasonable to suggest that we should have impact assessments in place.

[Michael Wheeler (Worsley and Eccles) (Lab)]

Does the shadow Minister accept that the strikes he talks about happened under an incredibly restrictive regulatory and legislative regime? The measures in the Bill seek to foster a better industrial relations environment, which will lead to fewer strikes, not more. Under the previous Government, we saw an incredibly restrictive environment, which ratcheted up the tension and resulted in more strikes.

[Greg Smith]

I hear the hon. Gentleman’s argument, but the proof of the pudding is in the eating. I gently ask him how a no-strings-attached bumper pay rise for the train drivers worked out in practice when it came to strikes over the Christmas period. We have heard repeatedly from Labour party politicians that they will prevent or stop strikes. The most visible example of that in our newspapers and on our television screens was the Mayor of London, who made some pretty bold promises about stopping strike action. Londoners and those coming into London for work, pleasure or hospital appointments have suffered multiple times during his tenure. I am not sure I fully accept the hon. Gentleman’s point that the Bill will somehow magically reduce the number of strikes, when the reality on the ground has been very different.

Given the prolonged and repeated strike action made easier by the Bill, it could almost certainly lead to large costs across the economy. We think it is only right that a level of transparency similar to that applied to Government Departments should be applied to trade union decisions. Trade unions should exercise some responsibility and consider the consequences of their decisions to undertake strike action. We would therefore like trade unions to assess the likely impact that their going on strike will have on real people and their lives, journeys, hospital appointments, theatre tickets, enjoyment, pleasure or whatever it might be that the strike action will prevent them from doing—and, of course, on our children’s education, which is so important.

New clause 43 would require trade unions to carry out impact assessments and family tests, to publish the reports of those, and to inform members of the trade union about their contents, before a ballot for industrial action can take place. It is hardly a controversial position that people should know what they are voting for before they are asked to cast a ballot on it, and that they should understand the consequences of the strike action not just for them, but for the wider economy and people’s health, education, and so much more across our great country. We think it is only right that trade union members should be fully informed of the consequences before they cast their votes. Such information would provide some public transparency about the cost and inconvenience that trade unions are willingly inflicting on the British public.

Employment Rights Bill (Seventeenth sitting)

Michael Wheeler Excerpts

Committee stage
Thursday 9th January 2025 Public Bill Committees

[Steve Darling (Torbay) (LD)]

It is a pleasure to work under your chairmanship, Mr Mundell. I broadly welcome the bringing together of powers under the fair work agency. I note that the Secretary of State is due to publish an annual report, but I am sure that businesses in Torbay would be interested to know where in the Bill the critical friend is to hold the Secretary of State to account and ensure that they are being light of foot and driving the agenda we all want to see in this area, so I would welcome the Minister’s sharing that.

[Michael Wheeler (Worsley and Eccles) (Lab)]

As is customary, I draw the Committee’s attention to my declaration in the Register of Members’ Financial Interests. I am a member of the Union of Shop, Distributive and Allied Workers and the GMB.

I warmly welcome this clause and the subsequent clauses, and the establishment of the fair work agency. I remind the Committee of the evidence we heard of the broad support for the agency, including from Helen Dickinson, the chief executive of the British Retail Consortium, who said:

“I think everybody is supportive of and aligned on proposals like a single enforcement body.”––[Official Report, Employment Rights Public Bill Committee, 28 November 2024; c. 99, Q95.]

Jamie Cater, the senior policy manager for employment at Make UK, said:

“The important thing for levelling the playing field is the fair work agency, and making sure that we have an approach to enforcement of labour market policy and regulation that is properly resourced and does have that level playing field.”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 54, Q53.]

Jim Bligh, the director of corporate affairs for the Food and Drink Federation, said:

“For me, it is about enforcement and having a really strong, well-resourced enforcement agency.”––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 55, Q53.]

--- Later in debate ---

For a starter for 10, I would argue that the word “independent” will need to do a lot of heavy lifting. For example—

[Michael Wheeler]

Will the shadow Minister give way?

[Greg Smith]

I will be delighted to in one second, when I have finished my train of thought.

Can someone be classed as independent if they are an academic or a university professor, perhaps with considerable knowledge of and expertise in employment law and matters relating to the Bill—someone we should all respect—but also a member of a trade union? Does their membership of a trade union count towards whether they are independent? Would that be at odds with paragraph (a)?

[Michael Wheeler]

I apologise for interrupting the egging of the pudding—we were definitely in the “over” area of the egging. Does the shadow Minister accept that despite what we have heard, and despite the picture that he is trying to create, this model works? It is not novel; we have the Low Pay Commission. It is an established fact. Despite the many layers and convolutions that we see being built in front of us, we are actually considering something quite straightforward here.

[Greg Smith]

I am grateful to the hon. Gentleman for his intervention and for what appears to be his support for the British egg industry. I encourage him to eat as many British eggs as possible and to support our farmers.

--- Later in debate ---

[Sir Ashley Fox]

I have a number of concerns about the establishment of the advisory board for the enforcement of labour market rules. I do not believe that such an advisory board is necessary and I am convinced that its creation would represent an expensive and bureaucratic exercise that would be redundant at best and a tool to disguise the Government’s intentions behind a veil of unnecessary consultation at worst. Let me explain why.

Let us first address the central issue: the need for advice. It is not as if there is a shortage of expert opinions on labour market matters; far from it. If the Secretary of State is seeking guidance from trade unions, he need look no further than the extensive and loud representation of trade union interests on the Benches behind him. There seems to be no shortage of trade union representatives in key positions, be it MPs with close ties to the unions or those with—

[Michael Wheeler]

Does the hon. Member accept that there is a difference between “member of” and “represents” when it comes to trade unions?

[Sir Ashley Fox]

Yes, I do. Indeed, “funded by” trade unions is another distinction. The point I am making is that this advice is available for free. There is no need for the Secretary of State to commission a board and pay representatives of trade unions to give him advice. The notion that three members of trade unions are needed on the advisory board seems, to put it bluntly, quite redundant. The Secretary of State can obtain that advice from any number of trade unions, their experts, or any of the MPs that sit on the Government Benches, who will all freely give it. Let us not forget that there are already plenty of independent experts contributing to various public bodies and providing high-level advice to the Government—there is certainly no shortage of them dotted throughout Whitehall.

If the Government require business perspectives, they certainly need not search too far for that advice either. If they wanted to, they could listen to the CBI or, if they preferred, to the Federation of Small Businesses, which provide ample insights and recommendations on policy matters relating to labour and employment. Those bodies represent businesses large and small, and have extensive networks of experts available to advise on any issues regarding the labour market. The problem—I suspect the Federation of Small Businesses would agree—is that the Secretary of State does not listen to them, so what difference would it make if he were to put one of them on a board of nine or 12? Do we need more voices from the same sectors giving advice?

Who might we see the Secretary of State appoint to this board? I am sure Sir Brendan Barber would get a look in, or perhaps Baroness Frances O’Grady. I wonder what Len McCluskey is up to these days—I am sure he has vast experience in employment rights matters.

Employment Rights Bill (Twenty First sitting)

Michael Wheeler Excerpts

Committee stage
Thursday 16th January 2025 Public Bill Committees

[Sir Ashley Fox (Bridgwater) (Con)]

I beg to move, That the clause be read a Second time.

Good morning, Sir Christopher. It is a pleasure to serve under your chairmanship. I am pleased to move the new clause, which would add special constables to the scope of section 50 of the Employment Rights Act 1996, giving them the right to unpaid leave to perform their duties.

Special constables are volunteers. They give their time, at no cost to the taxpayer, to help our police forces. Specials have existed in some form ever since the Special Constables Act 1831, which allowed justices of the peace to conscript volunteers. The special constabulary as we know it was established by the Police Act 1964, which gave chief constables the authority to appoint and manage special constables. Today’s specials carry all the same legal powers as their full-time counterparts, on and off duty. They put themselves in harm’s way, without payment, to keep our society safe.

I tabled the new clause because my constituent, Ms Emma-Elizabeth Murphy, asked me to do so. She came to see me at one of my first constituency surgeries and asked me to help her and her fellow special constables. Ms Murphy joined up as a special in 2021 and took the oath as a constable. Since then, she has recorded more than 1,300 hours of duties, arrested multiple offenders and dealt with fatal accidents. Last year, she was recognised as student special constable of the year.

Ms Murphy explained that she and many of her colleagues use their weekends and holidays to perform their duties. They may ask their employers for unpaid leave, but 60% of employers who were surveyed do not grant it. Bringing specials within the scope of section 50 would mean that their employer had to consider the request officially and grant a reasonable amount of unpaid leave. That would put them in the same position as councillors and magistrates.

The number of people who volunteer as a special has fallen by two thirds over the past decade. Many forces now face significant gaps in their special constabulary ranks. Applications have slowed significantly, with most special constables joining purely as a stepping stone into the regular force. The two-year attrition rate of the force is 90%. That means that the constabulary does not see a good return on the time and training that it invests in new recruits.

[Michael Wheeler (Worsley and Eccles) (Lab)]

It is a pleasure, as always, to serve under you, Sir Christopher. I draw Members’ attention to my declaration in the Register of Members’ Financial Interests and my membership of USDAW—the Union of Shop, Distributive and Allied Workers—and the GMB.

The hon. Member for Bridgwater is making a powerful case. Were the Government to accept his new clause, would he support the Bill as a whole?

[Sir Ashley Fox]

That would not be quite enough to offset the £5 billion-worth of costs for small and medium-sized enterprises. The advantage of the new clause is that it would not cost either the taxpayer or employers any money. However, I thank the hon. Gentleman for his contribution.

The truth is that, currently, many people simply do not have the time to offer to the role without employer support. The measure I propose would make it easier for specials to perform their duties and, I hope, help recruitment. Unlike so many of the proposals in the Bill, it would not cost either employers or the taxpayer any money.

I am pleased that this campaign has the support of the Association of Special Constabulary Officers and more than a dozen MPs from Government and Opposition. We also have the endorsement of 10 police and crime commissioners. Importantly, Assistant Chief Constable Bill Dutton, acting in his capacity as the National Police Chiefs’ Council lead for the special constabulary, has provided his written support for including special constables under section 50. The Minister has received letters from hon. Members in all parts of the House, and I believe that some of his ministerial colleagues, too, may have received letters or held meetings with Government Back Benchers.

The new clause could help with the recruitment and retention of many new special constables and it would make our streets safer. It would also finally recognise the work of the specials and put them on the same footing as the thousands of other people in this country who are allowed time off work to complete valuable civic duties. I ask the Minister to consider that.

--- Later in debate ---

[Greg Smith]

Well, there we have it. The Government who say they are pro-growth have shown their true colours and will not back our amendment to prove their intentions towards growth. This whole Bill is a socialist charter and we know that we cannot have socialism and growth at the same time. The history books have taught us that time and again.

We deeply regret the Government’s resistance to these two amendments. We will continue to be the party that champions business, growth and getting our economy going again, while this Government do everything they can, in this Bill and in their Budget and in so many other ways, to hold our economy back.

[Michael Wheeler]

Will the shadow Minister give way?

[Greg Smith]

Of course I will. Bring it on.

[Michael Wheeler]

I am going to try an entirely new tactic to derail the shadow Minister mid-stride. This is a genuine question, and I hope he answers it. Does he agree that throughout our line-by-line discussion of the Bill, he has been most generous with his time in accepting interventions that I believe to have been valuable?

[Greg Smith]

I am incredibly grateful to the hon. Gentleman for that intervention. It is for others to judge whether any Member of this House has been generous or otherwise.

What I can say, as we come towards the end of our debate on the final amendments and move on to the final clauses, is that we have had a good debate in this Bill Committee. It has not been one of those where those on the Government Benches are told to be quiet in the interest of getting on with it. We have had a genuine debate and a back and forth. Although we have not always agreed, and it looks like we do not agree on the amendments we are debating right now, we have had a debate. Our constituents sent us all here to represent them in arguments over ideas, concepts and values, and practical steps to meet the ideas and values that we hold dear, and we have done so. I agree with the spirit of the hon. Gentleman’s intervention.

On amendments 164 and 165, I repeat that His Majesty’s loyal Opposition regret that the Government do not wish to accept these pro-growth amendments. I will not press them for now, but we may well be seeing them very soon, when the Bill returns to the main Chamber on Report. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

Employment Rights Bill

Michael Wheeler Excerpts

Consideration of Lords amendments
Monday 15th September 2025 Commons Chamber

[John Cooper (Dumfries and Galloway) (Con)]

Sadly, we are not here to relitigate this entire Bill, which is so wide in scope and impact, and yet so skimpy in detail, having been cobbled together for a headline under Labour’s “first 100 days” banner. I refer the House to Lords amendment 61, which without doubt will be dashed aside as Labour seeks to salvage something, anything, as a legacy for its deposed red queen, the former Deputy Prime Minister, the right hon. Member for Ashton-under-Lyne (Angela Rayner), whose Bill this very much remains.

Lords amendment 61 would reinstate the requirement for trade union members to opt in to contribute to the political fund. Incredibly, Labour Members, who bristle at commercial subscriptions that rely on consumer inertia, will likely vote down this sensible and proportionate change. The reasons why demonstrate the wider issue with the Bill. The left’s hive mind aside, the Bill is a love letter to the unions—a thank you for all the support.

Labour has been bought with union gold, with donations totalling almost £40 million since the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) took the helm of his party. It means that the Bill is payback for the unions, all the time masquerading as a fillip for the working class. We know how important that working-class concept is for the Labour party from watching the candidates for the vacant deputy leadership engage in a “prolier than thou” contest, with hairshirt-and-gravel shades of Monty Python’s “Four Yorkshiremen” sketch thrown in.

In reality, the Bill has little to do with actual working-class people, and the Labour party has no monopoly on them in their ranks. Instead, the Bill does rather more for what is sometimes called the “boutique left”—the trade union apparatchiks and their ilk. The Bill only makes sense if we see it through the skewed prism of every employer being a robber baron and every union organiser a saint. It does nothing for all those who will struggle to find a job in the first place, as its granting of day one rights will give companies—already facing big bills thanks to employer national insurance contribution rises—pause for thought. Other amendments fight a rearguard action with a sensible six-month qualification period. The Bill means that unions are going to party like it is 1979—but they should have a care. In ’79, restive unions triggered strike after strike, sounding the death knell for both their own unfettered power and for the Labour Government.

Lords amendment 62 addresses the threshold for strike action, meaning that 50% of eligible members would have to vote for action. Are the unions not better being sure of the complete backing of their members before lighting the picket-line braziers? Again, the unions should learn the lessons of the past. Next year marks a century since the general strike. Although often talked of in reverential tones by the left, the strike left the unions’ proud red banners in the dirt and the miners it was meant to support back in the underground galleries with worse pay conditions. Why? Because the strike alienated the public. Last week, the chat from the man forced on to the Clapham omnibus when London was crippled by transport strikes was less, “Up the workers!” than, “Right up the workers,” with their £65,000 base salaries and demands for a still shorter working week.

Business cannot afford the Bill unamended, as it will take an estimated £5 billion out at a time of belt tightening. The public cannot afford the Bill unamended, as it will facilitate more frequent and more damaging strikes, and it will make jobs harder to come by. Labour itself cannot afford the Bill unamended. Labour Members may think that, with scandal and crisis all around, they cannot sink any lower in the popularity stakes. Oh, they can, and the Bill is the ticking timebomb that could take them to their nadir faster than they imagine.

[Michael Wheeler (Worsley and Eccles) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests, and to my proud membership of the Union of Shop, Distributive and Allied Workers and the GMB. I pay tribute to my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), who has just popped out for some well-earned tea, for his hard work steering the Bill through the House. I welcome the Under-Secretary of State for Business and Trade, my equally hon. Friend the Member for Halifax (Kate Dearden), to her place; we both know that she has big shoes to fill.

Today, we finally arrive at the concluding stages of this historic Bill’s long journey through Parliament. It is a moment that has been many years in the making. For well over a decade, working people have been calling for the protections that this landmark piece of legislation will introduce. It is our duty to deliver them, and to deliver them in full. Last year, people voted for change. They are crying out for change, and this Bill delivers real, meaningful and positive change. It is therefore immensely frustrating, although sadly not surprising, to see the old coalition band get back together in the other place, to have one final go at obstructing this Bill through changes, like Lords amendment 1, which will be the focus of my remarks.

One of the defining aims of the Bill is to end exploitative short and zero-hours contracts. The right to a guaranteed-hours contract is at the heart of the new deal for working people because, as I said on Report, the rise of one-sided flexibility has been one of the most damaging labour market developments of the past 14 years. Such contracts leave workers—often the lowest paid—vulnerable to sudden changes in income, with weekly working hours varying unpredictably. It is an unstable, precarious life that many are forced into, and it is long past time that this exploitative practice was brought to an end.

Lords amendment 1, a throwback team effort from the Liberal Democrats and the Conservatives, seeks to replace the Bill’s right to a guaranteed-hours contract with a far weaker “right to request”. At just five words long, the amendment may seem minor, but it is anything but. As working people know from bitter experience, a right to request often means no right at all. Unfortunately, it is clear from the comments made by the hon. Member for Richmond Park (Sarah Olney) that either Liberal Democrats do not understand or they are wilfully misrepresenting the amendment.

Lords amendment 1 creates a loophole, enabling unscrupulous employers to use pressure or coercion to deter employees from making requests. It also puts that crucial protection out of reach of those who simply are not aware of their rights in the first place. Far from delivering a new right, it reopens the door to workplace conflict, insecurity and exploitation, something of which I am sure the Liberal Democrats would not be proud. It is completely at odds with the spirit and purpose of the provision, and it must be rejected.

We must deliver greater security, stability and dignity to people in their working lives. The right to a guaranteed-hours contract, and the increased financial security that brings with it, is central to achieving that. It will be transformative for living standards, productivity and the economy. I urge colleagues from across the House not to undermine this essential provision and to reject Lords amendment 1. Working people are counting on all of us to do the right thing by them.

[Sir Ashley Fox (Bridgwater) (Con)]

I am pleased to speak in favour of the Government amendment in lieu of Lords amendment 21, which commits the Government to reviewing whether to add special constables to the list of roles that entitle an employee to request unpaid time off work from their employer under the Employment Rights Act 1996.

Special constables are volunteers who give their time freely, at no cost to the taxpayer, to support our police forces and keep our communities safe. They hold the same powers as regular constables: the power to arrest, to search and to detain. They carry the same responsibilities, face the same dangers and accept the same risks. Yet, unlike their regular colleagues, they are unpaid.

The special constabulary is one of the most remarkable institutions of British policing, with its history stretching back almost two centuries. The Special Constables Act 1831 allowed justices of the peace to conscript volunteers to help restore order during riots and unrest. The specials were called upon again during the first world war, when regular officers enlisted to fight. Their success led to the Special Constables Act 1923, which ensured their permanent place in policing.

From their inception, specials were designed to be a national contingency force: citizens stepping forward in times of crisis to strengthen the police service when needed most. That role is no less relevant today. The Government recently published a resilience plan, addressing the higher level of threat we face from Russia, global instability and multiple risks here at home. In such a context, specials are not a relic of the past, but a vital part of our security and civil defence framework, and a reserve force in all but name.

--- Later in debate ---

[Sam Rushworth]

It will not surprise my hon. Friend to hear that I completely agree with that assessment. They are clearly not on the side of my constituents or the people I am talking about, who just do not feel that they can assert their rights. Too many feel completely powerless, so it is right that we put the onus where it is. I will vote against the attempts in the Lords to water down that part of the Bill.

[Michael Wheeler]

On accessing the rights in the Bill, does my hon. Friend agree that, for people going about their busy daily lives at work and possibly struggling to make ends meet, there is a fundamental difference between a right to a contract with guaranteed hours and a right to request one?

[Sam Rushworth]

There is a difference. My hon. Friend is an expert in this field, having come to us from USDAW, and I know that those who worked on the Bill will have thought this through carefully. It certainly chimes with my experience. People should not need to have to request and assert their rights; they should be given those rights. That is what this Government are doing.

--- Later in debate ---

[Euan Stainbank]

I have to disagree with the characterisation of the Bill as increasing unemployment. We have heard the same about other measures. To tackle the hon. Gentleman’s point about somebody coming into a workforce and not being cut out for it, which I have seen happen in hospitality and retail industries, I believe that is addressed by the probation provisions in the Bill.

[Michael Wheeler]

I fully agree with my hon. Friend that the probation period is the core of the answer to the question from the hon. Member for Bridgwater (Sir Ashley Fox). Does my hon. Friend agree that a large part of the fear we see is due to scaremongering and misinformation spread by Opposition Members?

[Euan Stainbank]

I agree on the misinformation being put out about hypothetical situations, which are often talked about when we discuss hospitality.

I recognise the point being put forward for small businesses, but I also recognise that those businesses have the right to a probation period, and to other employment models, such as part time working. I have seen that happen quite frequently.

Employment Rights Bill

Michael Wheeler Excerpts

Consideration of Lords message
Wednesday 5th November 2025 Commons Chamber

[Amanda Martin]

I absolutely agree; I think the key word there is “exploitative”.

People in Portsmouth North and across the country deserve fairness, dignity and the ability to plan their daily lives and future. In sectors such as retail, hospitality, construction, social care and logistics, many workers are on unpredictable, variable hours,, with shifts cancelled at short notice or only a minimal work week offered in order for employers to control their labour costs. This makes budgeting, second jobs, childcare, healthcare planning and indeed everything in life almost impossible.

Let me give the House a local example. One of my constituents, “Sara”, has worked in a Portsmouth café on a zero-hours contract for four years. She is told at the beginning of each week what hours she might get. One week she might have 25 hours, and the next week she might get eight—and the next she might get nothing. Because she cannot predict her hours, she ends up in debt, skipping medical visits and having to rely on emergency credit to pay her bills. Under the Bill’s intended protection, Sara could request fixed hours and have far greater stability for herself and her family.

[Michael Wheeler (Worsley and Eccles) (Lab)]

My hon. Friend is making an incredibly powerful point. Does she agree that for Sara and for my constituents who are on short or zero-hours contracts, the meat of the amendment, which would introduce the bureaucratic farce of an offering of an offer, instead of a right, would ruin the meaningful change in the Bill and that the introduction of an ability for workers to opt out would open up a loophole with detrimental effects in the real world, where people could be rewarded with overtime if they agreed to opt out?

[Amanda Martin]

Absolutely. It would leave workers unable to reject overtime, even if they were knackered, having already done 60 or 70 hours that week.

That brings me to Dave, a plasterer working on one of my local building sites. He is technically self-employed, but in reality he is also on a rolling zero-hours contract. Some weeks he earns enough to keep his mortgage, and some weeks he earns enough to put aside a little bit of money for Christmas; other weeks, he earns nothing at all. He is told to stand down when winter hits and work slows, with no pay, no notice and no safety net. That insecurity is corrosive and affects not just finances, but families, health and morale on jobs.

Let us be clear, the public are firmly with us. According to the TUC’s 2025 mega-poll, support for guaranteed-hours contracts sits at over 70% across the regions and nations of the UK. This is not about denigrating businesses and business owners—many are fantastic and provide great opportunities—but without the bill, unscrupulous employers will continue to sidestep responsibility and run a race to the bottom.

Arguments are made that these measures would impose burdens on business, discourage hiring and risk flooding employment tribunals. Those concerns should not be a pretext for hollowing out protections and should instead ensure that workers know how much they will earn each month so that they can plan and live their lives. Sara and Dave, who I referred to earlier, are just two names; behind them are thousands of lives blighted by unfair employment practices. Sara and Dave will not mind me saying that they are not young. Despite what the Opposition want us to believe, zero-hours contracts are not just exploitative for the young; they are exploitative for many other people in our society.

People deserve the right to security. I urge colleagues to reject these Lords amendments, which would weaken the Bill, because fixed-hours entitlement is not a radical idea but a basic standard of decency in the modern world of work. If we really mean it when we say in this House that we respect working people, we must deliver laws that protect them.

--- Later in debate ---

[Kate Dearden]

I thank my hon. Friend for that excellent and well-made point. I am glad that he has managed to find the ctrl+F function with such speed. I always rely on him to provide such efficiency and clarity. The Bill will benefit more than 15 million workers. That is an incredibly powerful statistic to give at the Dispatch Box. More than 2 million people on zero-hours contracts could benefit, as well as the many workers he mentions who will benefit from further protections and rights at work.

[Michael Wheeler]

I thank my good and hon. Friend for giving way. Millions of workers, including those on zero-hours contracts, stand to benefit from the measures in the Bill. Does she agree that the amendments tabled by Liberal Democrat peers on the right to guaranteed hours are an unworkable bureaucratic mess that opens up scope for abusive practices in the workplace and removes the Bill’s meaningful protections from far too many workers?

[Kate Dearden]

I thank my good and hon. Friend for his important contribution. Like him, I meet many people in my constituency who do not know day to day whether they will have enough money for food and rent because they do not know how many hours they will work that week. That is why it is so important that we give people basic security by banning exploitative zero-hours contracts. We know that people value the flexibility that those contracts offer, which is why we are tackling the exploitative ones, as he rightly outlines. Those amendments might look for a different route to tackle exploitative zero-hours contracts, but we want to protect working people, because it is so important that they have certainty, week by week, on what they will be paid—that is what they deserve. I thank him for all his work in this area over a number of years. He brings a wealth of experience to this part of the Bill.

The Government are clear that we cannot build a strong economy while people are in insecure work. Employment law has not kept pace with modern working patterns, and that has allowed some employers to exploit gaps in the law, undercut responsible businesses and fuel a race to the bottom. Backed by our new industrial and trade strategies, the Bill will drive productivity, foster innovation and lay the foundations for long-term secure growth. It will level the playing field for good employers and put the UK economy in step with competitors in other advanced economies.

As we have heard today, I stand on the shoulders and build on the incredible hard work of many right hon. and hon. Friends. I pay tribute to them, and put on record my thanks and gratitude for all their work in getting us to where we are today. I hope that all hon. Members support the Government in our determination to get the Bill over the line and update our employment rights legislation in this country, for businesses and for employers, for the future and for growth. I thank hon. Members for their contributions.

Question put, That this House disagrees with Lords amendment 1B.

Employment Rights Bill

Michael Wheeler Excerpts

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to follow the right hon. Member for Ashton-under-Lyne (Angela Rayner).

As this Bill has progressed through Parliament, the Liberal Democrats have welcomed many of the principles underpinning it, and we are keen to see it progress. We welcome the fact that the Bill increases support for carers, boosts statutory sick pay and gives workers on zero-hours contracts more certainty. There is a lot in the Bill that we support in principle and that moves us in the right direction. However, we are also clear that the changes must happen in a fair and practical way that truly benefits workers, small businesses and our economy as a whole. That is very much how we are approaching the amendments in today’s debate.

First and foremost, we are glad to see that the Government have finally agreed to set the qualifying period for unfair dismissal claims at six months. That is a fair and sensible shift that will equally benefit workers and business. Employers have finally been given the necessary clarity to make hiring decisions with confidence, and we have avoided the danger of unnecessarily slowing down the labour market even further, which would have deprived so many people of vital employment opportunities. We are proud that Liberal Democrats in the House of Lords were instrumental in securing that crucial improvement to the Bill.

However, it is disappointing that the Government have effectively hijacked that breakthrough to abolish the cap on compensation for unfair dismissal at the last minute. The Minister will be well aware that abolishing the cap was not agreed in recent negotiations between employer groups, trade unions and the Government. Most businesses would have been happy for the cap to have been increased, but completely scrapping it, without any consultation or negotiation, has understandably left employers feeling deeply worried and facing yet another nasty surprise. There is real worry among businesses that doing away with the cap, which currently stands at £118,000, risks undoing much of the progress achieved by the six-month compromise, creating open-ended liabilities and encouraging litigious behaviour. I expect the Minister would agree that no one wants to see failed water company bosses jamming up the already-strained tribunal system, seeking eye-watering payouts.

More broadly, one has to reflect on how the Government’s approach to this last-minute change affects the relationship between Government, businesses and workers. Does the Minister not understand that springing the change on us at the 11th hour undermines business confidence and unnecessarily strains labour relations? The Liberal Democrats had hoped that today we could support the Government in setting the qualifying period at six months, but in the light of this abrupt change, it simply is not possible to support the motion in its current form. At the very least, will the Minister listen to concerned businesses and commit to setting a new, higher cap through secondary legislation following consultation with all relevant stakeholders?

[Michael Wheeler (Worsley and Eccles) (Lab)]

I am perplexed and confused by what I am hearing. Does the hon. Member appreciate that by moving the goalposts once again, and delaying this crucial Bill once again, she is leaving an open goal for unscrupulous employers?

[Sarah Olney]

Nobody is keener to see the Bill pass than the Liberal Democrats, and we have repeatedly worked with the Government to try to express our concerns. We would support the motion were it not for the lifting of the compensation cap being snuck in at the last minute. This last-minute change has not been part of any conversation that we have had with Ministers in the other place. That is why we will abstain on the motion.

--- Later in debate ---

[Sarah Olney]

The goal of the Employment Rights Bill should be to strengthen the economy for all so that we can get better employment conditions for everybody. I strongly believe that we need to strike the right balance so that we can support the economy as a whole.

[Michael Wheeler]

Will the hon. Lady give way?

[Sarah Olney]

I will make some progress, bearing in mind what Madam Deputy Speaker just said.

Zero-hours workers and businesses need far more clarity. Can the Minister at least clarify on the Floor of the House what the Government’s intended duration is for subsequent reference periods? I hope that after scrapping compensation caps, the Government will be a bit more transparent with stakeholders when it comes to flexible work.

One amendment that I am happy to welcome is on seasonal work. Many businesses, such as in the farming and agricultural sector, depend on recruiting the right people at the right time. Any obstacles to hiring seasonal workers can have a significant impact, exacerbating the long list of challenges they already face. Hospitality firms such as pubs, cafes and restaurants also often rely on seasonal workers and are particularly vulnerable to any regulatory changes that make it harder or more expensive to access the talent they need. All those employed as seasonal workers, whether in farming, hospitality or elsewhere, deserve reassurance that their work will not dry up. Last time the Bill was debated in the Commons, I spoke in favour of measures that would improve the clarity of the legislation on seasonal work, and I am glad that the Government have made progress. We are glad to support Lords amendment 48B, which would ensure that businesses relying on seasonal work and bodies representing seasonal workers will be properly consulted when secondary legislation is drawn up.

Businesses across the country, especially our SMEs, are struggling with unprecedentedly high costs, such as the Government’s unfair national insurance rise, sky-high energy bills and a broken business rates system. Struggling businesses means fewer jobs and lower pay, so it is clear that we must look for ways to support local businesses and all who rely on them.