Employment Rights Bill

Sarah Olney Excerpts

Wednesday 5th November 2025 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

It is a real pleasure to follow the right hon. Member for Ashton-under-Lyne (Angela Rayner) and hear her passionate advocacy for this Bill.

The Liberal Democrats support many of the principles of this Bill. We have long advocated for strengthening employment rights in several ways, including by increasing support for carers, boosting statutory sick pay, and giving people on zero-hours contracts more certainty about their working patterns. There is a lot in the Bill that we support in principle and that moves us in the right direction, but we remain concerned about the specific way in which the Government plan to implement many of its measures. So much of the detail that should have been in the Bill has been left to secondary legislation or future consultations, making it impossible for businesses to plan ahead with certainty.

For that reason, we support amendments that provide clarity for businesses, for example by setting the qualifying period for unfair dismissal claims at six months. Training, hiring and retaining a skilled workforce are issues that affect businesses across the country, and we must ensure that this legislation strikes the right balance for both employees and businesses.

[Antonia Bance]

Does the hon. Member believe that, in the first six months of employment, it is appropriate for people to be dismissed for unfair reasons and without a fair process?

[Sarah Olney]

The point has been made on a number of occasions that it is always possible for employers to make mistakes in their hiring—for people to not be the right fit for the job. There should be a straightforward way for those employers to dismiss those people without being challenged on the basis that the dismissal was unfair. The key point is not that employers should be allowed to make unfair dismissals, but if a dismissal has been fair, they should not have to defend it.

[Justin Madders]

The Liberal Democrat spokesperson has just said that it is not right that employers should pay for a mistake they made in hiring someone. Why should the employee pay for that mistake, if it was not theirs?

[Sarah Olney]

There is a balance between the employer and the employee. If the fit is not right, it is better for both sides that the employment is brought to an end, and that the employee is free to seek more appropriate employment.

There are very significant concerns. The lack of clarity about probation periods, which the Minister mentioned, and exactly what they mean, risks piling undue worry on to business managers who are struggling to find the right skills. We can compare that with the provisions in the amendment tabled on unfair dismissal.

My Liberal Democrat colleagues and I, both here and in the other place, have been clear in our support for an amendment that would change the obligation to offer guaranteed hours to a right to request guaranteed hours. Amendment 1B would allow an employee to notify their employer if they no longer wished to receive guaranteed hours offers, but they would be able to opt back into receiving guaranteed hours offers at any time. That reasonable and balanced approach would relieve employers from having to issue guaranteed hours offers each reference period to workers who may simply not be interested in them, while ensuring that those who wished to receive such offers could continue to do so.

The Liberal Democrats strongly believe in giving zero-hours workers security about their working patterns, and we are deeply concerned that too many workers are struggling with unstable incomes, job insecurity and difficulties in planning for the future. However, we also recognise that many people value the flexibility that such arrangements provide. Adaptability in shift patterns is often hugely valuable for those balancing caring responsibilities or their studies alongside work. It is therefore important to strike a balance that ensures that workers can have both security and flexibility.

Specifically, small and medium-sized businesses have highlighted that having to offer employees fixed-hours contracts on a rolling basis could impose significant costs and administrative burdens on their limited resources, compounding other challenges, such as the recent increase in employer national insurance contributions and the fallout from the previous Government’s damaging Brexit deal. The Liberal Democrat amendment that was debated in the Lords is in line with our long-standing policy that zero-hours and agency workers should have the right to request fixed-hours contracts—a request that employers could not unreasonably refuse. We believe that measure would maintain valuable flexibility and benefit both parties when the obligation to keep offering guaranteed hours, even to workers who clearly are not interested in them, imposes a significant burden that does not benefit either side.

As with all workplace rights, employees should be supported to exercise a right to request guaranteed hours without fear of any negative consequences in their workplace. The unified fair work agency being set up by the Government, which we welcome, could help ensure that employees received that protection and support. This approach would still give workers the vital security that they deserve, while avoiding unnecessary burdens for employers.

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, so I will once again speak in favour of Lords amendment 48B. The sustainability of so many companies, such as farming businesses, depends on getting the right people into the right place at the right time. Any obstacles to actioning that can have a huge impact on company operations, potentially throwing the entire business into jeopardy. Hospitality firms such as pubs, cafés and restaurants also rely on seasonal workers and are particularly vulnerable.

[Euan Stainbank (Falkirk) (Lab)]

Can the hon. Lady define what rights somebody working behind a desk in this place should have under amendment 48B that somebody working behind a bar in this place should not?

[Sarah Olney]

They are different kinds of work with different work patterns, requiring different skills and experience. I am not entirely certain what point the hon. Member wants me to respond to.

If a different regulatory framework is to apply to seasonal work, a clear definition of seasonal work must be created to prevent employers from avoiding their legitimate responsibilities by claiming employees as seasonal workers in inappropriate circumstances. We continue to call for businesses that are especially reliant on seasonal workers to be properly considered when secondary legislation is created, so I urge Members to support amendment 48B.

On trade unions, I again speak in favour of Lords amendment 62B to maintain the status quo, in which a 50% ballot threshold is required for industrial action. The Government’s proposal to remove the threshold entirely means that a trade union could take strike action with only a small minority of eligible members taking part in the vote. That is bound to raise questions among the public about whether the will of workers has been accurately represented, and it risks unnecessarily creating tensions between workers, employees and the general public. That would not be a good outcome for any of the parties involved. We should maintain a robust process for launching industrial action.

[Ian Lavery]

Will the hon. Lady inform the House of the statistics relating to her election at the general election? She was elected by a minority. If it is good enough for her—she is doing a great job, by the way—why is it not good enough for ordinary working people?

[Sarah Olney]

The hon. Gentleman will be happy to hear that 53.3% of Richmond Park voters voted for me to be their representative, so I was, in fact, elected by the majority of my constituents. I am delighted to hear that he thinks I am doing a good job for them. I think he was attempting to highlight that many of the people in the Chamber were elected on less than 50%. The first thing I would say to that is that on most ballot papers, there will have been a choice of more than two candidates.

[Ian Lavery]

Will the hon. Lady give way?

[Sarah Olney]

May I finish the point? If people are choosing from a list of five people, it is likely, under the first-past-the-post system, that the winning candidate will receive less than 50% of the vote. In a strike ballot, the choice is between two options. That is why there should be more than 50% of all members voting for the option to strike. That is the important point here.

Secondly, the hon. Gentleman has given me an excellent opportunity to point out that the Liberal Democrats have long been advocates of voting reform. Last December, I introduced a ten-minute rule Bill advocating for proportional representation, which was passed. It remains the will of the House, as expressed on that occasion, that we should change the way in which we elect hon. Members.

Maintaining a robust process for launching industrial action is particularly important when we consider the scale of the disruption that the public face when strikes happen. The Liberal Democrats also continue to support measures that would retain the current opt-in system for contribution to trade union political funds. Amendment 72B maximises choice and transparency for individuals about the political funds to which they are contributing.

Most employers are responsible businesses that want to do the right thing by their staff, many of whom support the Bill’s aims, but they have significant concerns about the extent of the Bill, much of which is still undecided on and risks compounding other challenges that they face. Changes in employer national insurance, slow progress on reform of the apprenticeship levy and the absence of any meaningful action to bring down commercial energy prices continue to be extremely damaging to businesses, and to our economy as a whole. We must find a way to support small and medium-sized businesses in particular, and to provide clarity, so that they can plan ahead. If the Government were prepared to make meaningful improvements to the Bill that would make things easier for small businesses—for example, through the amendments suggested by the Liberal Democrats—they might find it easier to make progress with the legislation.

We support many of the aims of the Bill, and the spirit of the measures that strengthen employment rights, but I urge Members to support our amendments, which will help to ensure that this legislation strikes the right balance for both workers and business.

[Several hon. Members rose—]