Employment Rights: Impact on Businesses

Rachael Maskell Excerpts

Tuesday 16th September 2025 Westminster Hall

[Rachael Maskell (York Central) (Ind)]

As ever, it is a pleasure to see you in the Chair, Dr Murrison, and I am pleased to follow the hon. Member for Spelthorne (Lincoln Jopp).

Next year will mark 125 years since Seebohm Rowntree’s report into poverty. It was that report that sparked Seebohm and Joseph Rowntree to use their family business to institute rights for workers in my constituency: paying decent wages; introducing pensions and good terms and conditions; and providing welfare, education and leisure. Sickness levels fell, productivity boomed and workers were better off.

Concurrently, in the crucible of industrialised Britain, the trade unions were making a case for similar rights, often to less amenable employers. They organised, they fought, they spoke up and they succeeded in winning their battles. They wanted those rights for all workers, so they found their political voice and founded the Labour party. At this point, I will refer to my entry in the Register of Members’ Financial Interests. I was a trade union official for 17 years and a national officer for 12 years, and I have worked across many industrial sectors.

In response to the speech by the hon. Member for Spelthorne, I would say that if we have strong partnerships between trade unions and business, or between trade unions and the public sector, we have the opportunity to hit a sweet spot. We will therefore not see the industrial action that he talked about and that we saw in spades under the last Government. We will also advance the interests of businesses and workers side by side, which is a strength, and where economic power comes from having strong employment rights.

[Lincoln Jopp]

Was the hon. Member affected by the tube strikes the other day?

--- Later in debate ---

[Rachael Maskell]

I was not, because I walk or cycle through London, which I recommend to everybody. Those strikes did not have an impact on me at all.

Good industrial relations are important for business, because when employers are in touch with their workers, business can boom. Ultimately, the people with the most vested interest in the success of a business are the people whose jobs depend on it, so when they are included in the industrial environment, the opportunities come.

The hon. Member for Spelthorne referred to employees’ talent. If employees are brought into the fold, so their imaginations run free and their creativity flourishes, that opportunity really strengthens business. That is why the measures that Labour introduced this week are good for workers and good for business. I congratulate the Labour Government on bringing forward what I hope will be just their first Employment Rights Bill. Instead of causing the fragmentation that we are seeing across our country, good workers’ rights are good people’s rights above all. They address equality and bring fairness, not only in the industrial setting but across wider society as well.

Too many workers have been left feeling insecure, however, such as those in the gig economy, the self-employed and the bogus self-employed. We have a duty to close those loopholes. Indeed, the hon. Member said that employers will seek more loopholes, but of course, we will close them if labour is being exploited. The picture of business for far too long has been about workers getting less of the wealth from business while contributing more. We have to restore such values in the workplace.

Yesterday, I was filled with real pride as we went through the voting Lobby—I think we went through 12 times. I am proud of the legislation, which will provide day one employment rights, giving people real security in employment; improve statutory sick pay; give greater flexibility to workers while ending abusive fire-and-rehire practices and exploitative zero-hours contracts; and strengthen collective redundancy rights.

[Steve Yemm (Mansfield) (Lab)]

My constituents tell me how important it is to strengthen statutory sick pay, particularly for lower-paid workers who cannot afford to take time off work without it. Does the hon. Member agree that, contrary to the views of Opposition Members, that is a particularly important employment right?

[Rachael Maskell]

I am grateful to the hon. Member for mentioning that. When I was the shadow Secretary of State for Employment Rights, we really fought for that right, not least during covid. What a difference it would have made to workers then, and it would have kept our country safer. Of course, we need to look after people when they are sick, so I dispute what the hon. Member for Spelthorne said about a menopause plan costing business—women generally would also certainly dispute that, because having a plan would be better for business and better for women at work.

We must reset the relationship with trade unions, which is why establishing a Fair Work Agency and championing engagement around equality are important. I look forward to the future for businesses with a traditional Labour agenda that benefits businesses and workers by bringing better security and better productivity, and providing the green shoots of rebuilding the economy.

I recognise that businesses are in a fragile environment. Over the summer, I held business summits for the daytime and night-time economy. The attendees are looking forward to engaging with me as we set out our plans for our city together: resetting the climate, realigning workers’ rights and giving businesses a boost. The voices of businesses are really important. The Living Wage Foundation notes that 87% of employers say that paying the living wage improved the reputation of their business, and two thirds said that it improved recruitment. A letter about the Employment Rights Bill from leading economists and employment lawyers, published by the Institute of Employment Rights, says:

“The emerging consensus is that labour laws do not, on the whole, have negative economic consequences, and may well have positive ones.”

[Euan Stainbank (Falkirk) (Lab)]

Does my hon. Friend agree that we have to assess the economic impact and consequences, which we have seen over a number of years, of low pay and insecure hours, and how they have contributed to high turnover and sickness absence in businesses? I believe that those problems are substantially addressed by the provisions of the Employment Rights Bill.

[Rachael Maskell]

My hon. Friend has spoken powerfully and brought that observation to the attention of the House. Low productivity was also a major feature of the last Administration.

The letter goes on to highlight how worker protection positively impacts productivity, how investment in skills improves the competency of workers, and how collective bargaining raises wages and stabilises employment. Over time, that positive investment will spill out to the wider economy and Government, so that there can be investment in the public services that have been so broken. If workers have more in their pockets, they are more likely to spend in the local economy, and wage disparities will be addressed so that wealth is more evenly spread, boosting local business. We also still have parts of the Taylor review and its 53 recommendations to implement to help small employers and those in irregular work.

[Lincoln Jopp]

A few months ago, The Times invited the Chancellor of the Exchequer to address its CEO summit. Just before the Chancellor was called up to the stage, the host reminded the audience that the Chancellor had promised that this would be the most pro-business Government ever. The host then invited the chief executive officers—I think there were 200 of them—to say how many of them, having seen the Labour Government at work, think that it is pro-business. Not a single hand went up. Is the hon. Member aware of that?

[Rachael Maskell]

In the first of five years, we have had to repair the economy. That has been our focus, but as we move forward, businesses will see the vision that Labour has for rebuilding the economy. In my constituency, I see the vibrant boom of entrepreneurs and their business concepts coming to fruition. People want to start a business and see its success. We will certainly build the wider infrastructure needed for that.

There is much more that we need to do to advance the rights of workers. Sector bargaining is a must, with standards and terms to boost economic sectors across the economy, address labour shortages and provide sector security. I would like to see workers on company boards, co-producing with businesses and seeing the success of workers. A single status for workers is really important as we move forward. That is an issue that I have worked on for many years.

On changing the culture in workplaces, I want to ensure that workers no longer have to fear negative behaviours at work. An issue close to my heart, and one that I have worked on for many years, if not decades, is bullying at work. In two different parliamentary Sessions, I have introduced a Bullying and Respect at Work Bill, addressing negative cultures in the workplace. Bullying costs business £18 billion, and 17 million working days are lost.

We need a legal definition of bullying, a route to an employment tribunal and a positive duty to prevent, as in Australian legislation. I hope the new Minister, who I welcome to her place, will be willing to meet me and campaigners to discuss such legislation to ensure that we can introduce such a measure on one of the biggest issues blighting business today.

If workers are not subjugated and their wages are not extracted, we will build a more equitable society, a strong economy and flourishing businesses. A cohesive society is certainly something that I know working people long to see under this Labour Government.