← Back to House of Commons Debates
Employment Rights
08 June 2021
Lead MP
Paul Scully
Debate Type
Ministerial Statement
Tags
Crime & Law EnforcementEconomyEmployment
Other Contributors: 24
At a Glance
Paul Scully raised concerns about employment rights in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Government announced steps to protect workers’ rights post-COVID-19, including creating a single body for state enforcement of employment rights and modernising the regulation of trade unions. In April, the government increased pay for around 2 million workers and supported over 11.5 million through the coronavirus job retention scheme. Concerning 'fire and rehire' practices, ACAS’s report highlights the use of this tactic as unacceptable when it pressures employees to accept worse terms or face dismissal. The Minister asked ACAS to produce clearer guidance on avoiding fire and rehire where possible but acknowledged potential legal reforms need careful consideration to prevent adverse outcomes like increased redundancies. For labour market enforcement, a new body will tackle issues such as minimum wage compliance, holiday pay, modern slavery, and financial penalties for non-compliance with requirements. The Minister also announced extending the certification officer’s powers to investigate unions proactively, impose fines, and move to a levy funding model.
Andy McDonald
Lab
Middlesbrough and Thornaby East
Question
How will the Government proceed with creating a single enforcement body for labour rights when there is no new funding or legislative plan?
Andy McDonald
Lab
Middlesbrough and Thornaby East
Question
Why has the government not legislated to ban fire and rehire, despite acknowledging its misuse? Also, what steps will be taken regarding trade union regulation?
Andy McDonald
Lab
Middlesbrough and Thornaby East
Question
The Government have overseen a crisis of insecurity and a lack of protections at work, and the proposals announced today will do little to address it. There is no plan to legislate for a single enforcement body, so can the Minister explain how and when that will happen? There is no new money in this announcement. In the past year, just one workplace in 171 has had a safety or workers’ rights inspection, and not a single employer has been prosecuted for putting workers at risk of contracting covid-19. A staggering 2 million people are paid below the national minimum wage. The hollowness of the Government’s commitment is underlined by the fact that the post of director of labour market enforcement has been vacant for six months. Many exploitative employment practices remain legal, such as bogus self-employment in the gig economy and fire and rehire tactics. The proposal to give the certification officer powers to fine trade unions without complaints from members is an ideological attack on working people. Staff in his Department are balloting for strike action due to breaches of employment law. This Government want to hobble trade unions while Joe Biden empowers them.
Minister reply
We have more than doubled the budget for minimum wage enforcement, now over £27 million annually, up from £13.2 million in 2015. There are more than 400 HMRC staff involved in enforcing the minimum wage and returning £16.7 million to workers. We will continue to increase national minimum wage and living wage and enforce action on transgressions. On fire and rehire, we want to protect people’s jobs and working conditions but not just paint all employers with the same brush. The changes to the certification officer’s duties adhere to the law as implemented in the Trade Union Act.
Question
Many constituents work at Manchester airport and will welcome action on fire and rehire in the aviation sector. A single body for employment rights is welcome, but an office of the whistleblower should be established to protect whistleblowers from retaliation and blacklisting. Does my hon. Friend agree that it is time for such an office?
Minister reply
We recognise how valuable it is that whistleblowers are prepared to shine a light on wrongdoing without fear of recriminations. We will review the whistleblowing framework once we have sufficient time to build evidence of the impact of recent reforms.
Question
Strong employment legislation, regulation and guidance help businesses that respect such standards be more successful than those playing fast and loose with employees’ rights. Will the Minister commit to working across the Chamber, with trade unions and employers to ensure that the highest employment law expectations are maintained and enhanced? An annual review of the measures would help ensure that we are getting this right and protecting workers.
Minister reply
We will continue to look at and review the impact of legislation, guidance and our work on workers’ rights to check it is working for a 21st-century economy. We will continue to do that and continue to work with colleagues from either side of the Chamber to hear about constituents’ casework. On fire and rehire, nothing is off the table.
Darren Jones
Lab
Bristol North West
Question
The Minister's statement on fire and rehire is confusing, as it states the practice is wrong but does nothing to stop its misuse. The single enforcement body will require legislation not yet lined up for this session, making today's announcement merely a statement of intent without action.
Minister reply
In terms of fire and rehire, guidance will be provided by ACAS to strengthen protections against the bully-boy tactics while maintaining labour market flexibility. When parliamentary time allows, an employment Bill will create the single enforcement body.
Richard Fuller
Con
North Bedfordshire
Question
The Minister highlighted the UK's strong economy and flexible labour market with high employment rates and minimum wage increases. Will my hon. Friend praise the Biggleswade jobcentre for promoting the kickstart programme to get more people, especially young people, into work?
Minister reply
My hon. Friend praises the UK’s dynamic and flexible economy which attracts inward investment. Initiatives like the kickstart scheme are essential in creating levelling-up potential and providing employment opportunities.
Sarah Olney
Lib Dem
Richmond Park
Question
Although the Minister accepts more needs to be done for workers' rights, especially for vulnerable individuals, he has not concluded that further legislation is necessary. Will this new body receive extra funding to enhance and strengthen workers’ rights?
Minister reply
We will increase funding for enforcement measures when we introduce the single employment body through legislation.
Question
Despite strong laws, pregnant women often experience discrimination at work. Will the new enforcement body specifically enforce pregnant women’s rights and outlaw non-disclosure agreements to cover up illegal employment rights abuses?
Minister reply
We will extend redundancy protections for six months for mothers returning from maternity leave and ensure pregnant women also benefit from these additional protections, as part of the upcoming employment Bill.
Question
After months of strong words about fire and rehire from the Prime Minister to the Minister, this statement only provides guidance that amounts to nothing more than lip service. Will employers still legally be allowed to use fire and rehire as a negotiating tactic?
Minister reply
Fire and rehire should not be used as a bully-boy tactic; however, we need flexibility for employers so they do not have to make redundancies in the first place.
Hayes and Harlington
Question
This statement is one of the most ineffective I've heard. Fire and rehire has harmed my constituents despite taxpayer support for these companies through various schemes. Will the Government insist that no grant, loan or tax relief goes to companies that do not abide by this guidance?
Minister reply
We will strengthen the guidance on fire and rehire and work with ACAS to see how it lands, ensuring responsible employers stick to their responsibilities for the lowest paid.
Question
Today’s statement is welcomed in Stoke-on-Trent North. Companies like Churchill China have invested in workers’ rights, allowing employees to climb career ladders. Does my hon. Friend agree that there is no reason why trade unions should not pay their own way?
Minister reply
Trade unions paying their own way is acceptable and holding them accountable just as we do for businesses is perfectly fine.
Richard Holden
Con
Basildon and Billericay
Question
With great job creation since 2010, will the Minister agree to meet me to discuss extending auto-enrolment rights to all workers over the age of 18?
Minister reply
My hon. Friend is right about a dynamic economy which attracts voters; I am happy to meet him to discuss auto-enrolment.
Question
The Government are consulting on enforcement powers against trade unions but only provide guidance for bad employers regarding fire and rehire. When will the Government legislate on Taylor report recommendations?
Minister reply
We have tried to get the detail right for legislation from the 'Good Work' report, and when parliamentary time allows, we will bring an employment Bill with these measures.
Question
Our business, energy and industrial sectors are pivotal to our economy. Does the Minister agree that the best way of safeguarding jobs and livelihoods for our fantastic workers is to comprehensively ease all covid restrictions in these sectors, and will he please lobby No. 10 to that effect?
Minister reply
Nobody wants these restrictions to go on a single day longer than they need to. We are in the middle of a frustrating period, with the decision to be made on the 14th of this month. We are looking at the data, and every day that goes by gives us a richer set of data to make the best decision for businesses.
Stephen Timms
Lab
East Ham
Question
The case won by the GMB trade union against Uber over the status of its drivers is immensely important, but why are the Government leaving it for these issues to be slugged out, employer by employer, worker group by worker group, in the courts? That is in nobody’s interests, so when will the Government finally bring forward the long-promised employment Bill, which is so urgently needed?
Minister reply
The Uber judgment that the right hon. Gentleman talks about was a landmark judgment. It is important that we reflect on that, but it is important that Uber, primarily, reflects on that and makes sure that workers are getting their rights, because every worker is different. Indeed, Uber contracts have changed over the last few years, and other companies working in the gig economy have different contracts, so it is complicated, but that is the definition of flexibility and dynamism. None the less, he asked about the employment Bill, and as I have said, it will come forward when parliamentary time allows.
Kevin Hollinrake
Con
Thirsk and Malton
Question
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. As a former employer, I absolutely support the Government’s approach to strengthening workers’ rights and stamping out bad practice. When it comes to enforcement, whistleblowers are far more effective at identifying inappropriate behaviour or practices than regulators are. Nevertheless, from a position where the UK used to lead in whistleblower legislation, it has now fallen behind. It is a key area that we could work on to improve the situation. Will my hon. Friend the Minister set out the approach that the Government will take to improve the legislation?
Minister reply
I am grateful for my hon. Friend’s work in this area. I am looking forward to meeting him and his colleagues to discuss it further, to get his knowledge and the experience of his constituent, who has been put in an incredibly tough and invidious position. As I say, we will review the whistleblowing framework once we have had sufficient time to build the necessary evidence, which will include that conversation. We are considering the scope and timing of the review.
Warrington North
Question
Polling for the GMB union found that 76% of the public want fire and rehire to be banned, including 71% of Conservative voters. If only unscrupulous employers use fire-and-rehire tactics, as the Minister said in a previous answer, a non-legislative solution will do absolutely nothing. How much more consensus is needed before the Minister acts to ban fire and rehire, rather than warm words that do nothing to protect workers in his constituency or mine?
Minister reply
I have noticed that I can shrink my long list of responsibilities in the ministerial portfolio down to Minister for unintended consequences. I do not want to have a series of legislation, which is a blunt instrument, as if it is tackling a binary tool. That would have unintended consequences for people’s jobs and livelihoods. We want to have a flexible economy so that we get both right.
Question
I welcome the way in which the Minister is today extending the rights of the most important asset of any business, which is people. I am sure he will agree how essential it is to ensure that flexibilities enable workers to work the hours that suit them best, while also allowing employers to respond to the changing demands of their customers.
Minister reply
My hon. Friend is absolutely right. We need flexibility in the workplace, including so-called zero-hours contracts, for example. We know that the majority of people who work on zero-hours contracts like the flexibility. However, we want to ensure that we can clamp down on things like exclusivity contracts, which is why we banned those. It is important to get the balance right.
Question
The Minister just said that the UK Government will do whatever is needed to enhance and protect workers’ rights, but all he is doing on fire and rehire is to provide more guidance. That is shameful—guidance is not what is needed. We needed to hear about legislation to stop fire and rehire, to outlaw pregnancy and maternity discrimination, and to give flexible-working rights from day one to protect precarious workers, but the UK Government will plainly not do what is needed on employment. Does the Minister appreciate that what is needed now is to devolve this to the Scottish Parliament so that it can do what is needed?
Minister reply
If the hon. Lady reads the ACAS report, she will see that there is a divergence and a variety of opinions, as well as a wider evidence base about the extent of use and how that is used. That is why we are coming up with a proportionate response. Clearly, the other issues she raises will be in the employment Bill when parliamentary time allows.
Question
I know my hon. Friend understands that right hon. and hon. Members across the House want the UK to be on the front foot on workers’ rights after we leave the EU. Will he offer me a categorical assurance that that will be the case and that there will be no degradation in our world-leading protection?
Minister reply
Yes, absolutely that is the case. We are determined to ensure that this is the best place not only to set up and have a business, but to work—for workers’ rights, high pay and a highly productive economy. That can only be done by valuing our people.
Rachael Maskell
Lab Co-op
York Central
Question
I refer to my entry in the Register of Members’ Financial Interests. The Government may talk about enhancing employment rights, but they never act and never legislate. Recently, workers in York were being forced on to new contracts until a joint intervention by Unite and me, as a Labour MP, stopped the firing and rehiring. I know it is embarrassing for the Minister to have to defend his Government’s empty promises, dither and delay, but to stop bad employers constantly undermining their workers, we need not more guidance, but legislation. Will he bring forward a Government Bill to end fire-and-rehire practices in this parliamentary Session, which should also insist that any changes to contractual terms are negotiated with workers and their trade unions?
Minister reply
I have outlined what we are doing around fire and rehire. Extra and enhanced workers’ rights will come in the employment Bill. The workers the hon. Lady describes have recourse, through ACAS and employment tribunals, to take their employers to task.
Question
I welcome today’s announcement. My hon. Friend is quite right to point out the nuance in fire and rehire. Speaking as an employment barrister, I stress that the issue that we lawyers have had is that the employer is required to show only that it is a genuine reason—in other words, low profitability. They are not required to show that they have exhausted every other option, and I welcome the fact that that is now a devolved function of ACAS. Will he consider putting the last resort clause into primary legislation—either the Employment Rights Act 1996 or the new Bill—to give employees rights to go to tribunal?
Minister reply
I thank my hon. Friend, as ever, for her considered response in this area, with the expertise that she brings to bear. Clearly, as I say, nothing is off the table. We are putting the guidance in place with ACAS, but we will look at more measures should we need to.
Shadow Comment
Andy McDonald
Shadow Comment
The shadow minister criticised the lack of legislative measures to create a single enforcement body for labour rights, pointing out underfunding led to poor inspection rates during the pandemic. He highlighted that without proper funding or new legislation, merging agencies is ineffective. The response also critiqued the government’s stance on fire and rehire as insufficient, demanding immediate action to ban the practice due to its prevalence since March 2020. Additionally, he criticised proposed reforms to trade union regulation, arguing they disproportionately burden unions without substantial justification.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.