Employment Rights Bill – in the House of Commons am 6:50 pm ar 12 Mawrth 2025.
Amendment made: 262, line 5, after “equality;” insert—
“to amend the definition of “employment business” in the Employment Agencies Act 1973;”.
This amendment is consequential on NC36.
Amendment 263, line 6, leave out—
“the Adult Social Care Negotiating Body”
and insert “Social Care Negotiating Bodies”.— (Justin Madders.)
This amendment is consequential on NC37.
Third Reading
King’s consent signified.
I beg to move, That the Bill be now read the Third time.
I refer hon. Members to my entry in the Register of Members’ Financial Interests and declare that I am a lifelong proud trade unionist.
Let me begin by thanking right hon. and hon. Members on both sides of the Chamber for their positive and constructive engagement over recent months. In particular, I thank my hon. Friend Justin Madders for his superhuman work in steering this Bill through its Commons stages, and all the members of the Public Bill Committee for their thoughtful scrutiny.
When this Government took office, we promised the biggest upgrade to workers’ rights in a generation—nothing less than a new deal for working people. We said we would introduce a Bill to deliver that within 100 days, and we heard from Conservative Members who said we should not; and there were those who said we could not, but we did. Today, this House is taking another giant step towards making work pay. Let us be clear: too many working people have had to wait for too long for change. Over a decade, wages flatlined, in-work poverty grew, and growth was strangled. We inherited a failing economy that served no one, but today a Government of working people for working people are turning the tide.
This landmark Bill—pro-growth, pro-business and pro-worker—will put fairness back into work. Almost 9 million employees will be protected from unfair dismissal, up to 2 million will receive a right to bereavement leave and 1 million workers on zero-hours contracts will get the security they deserve. In three weeks’ time, over 3 million workers will see one of the biggest rises in the minimum wage on record. We said that we would make work pay, and this Government meant it.
Our vision is backed by many of the best businesses such as the 1,200 members of the Good Business Charter, from FTSE 100 companies to small and medium-sized enterprises. They prove that if you treat people well, you get the best out of them. They know that being pro-worker is not a barrier to success, but a launchpad to it. That is why this Bill takes the very best standards from the very best businesses and extends them to millions more workers. It is also why we proudly say that this is a pro-business and pro-worker Bill.
But we know that this will represent change, and I understand that many businesses want to work with the Government to get the details right. Our commitment in the weeks and months ahead to is do just that. My message is clear: this transformative package is a huge opportunity. It is a once-in-a-generation chance to reshape the world of work, to drive a race to the top on standards, to deliver growth and to build an economy that works for everyone.
We know that the Tories, in lockstep with Reform, will fight this every step of the way. Over two decades ago, they did the same with Labour’s minimum wage. They said then that it would destroy 2 million jobs, and now they are queueing up to vote against every single measure in this Bill, but the truth is that they were wrong then and they are wrong now. The only thing they are consistent on is that every time they have had the chance to deliver basic fairness for workers, they have voted against it. We know that they cannot be trusted to stand up for working people, but this Labour Government will.
For too long, people in Britain have been overlooked and undervalued, and our plan changes that: with jobs that are more secure and family-friendly; with women supported in work at every stage of life; with a genuine living wage and sick pay for the lowest earners; with further and faster action to close the gender pay gap; with rights that are enforced; and with trade unions that are strengthened.
In July, after 14 years of failure, the country voted for change. We promised to deliver a new deal, and today this Labour Government deliver on that promise with a once-in-a-generation transformation to build an economy based on fairness, to raise living standards, to drive growth and to deliver a better Britain for working people. I commend this Bill to the House.
Before I summarise the Opposition’s view on the Bill, I pay tribute to those on the Conservative Benches who contributed during its passage. My hon. Friend Greg Smith has held the Government to account with forensic skill on Report and in Committee. He was joined in the Bill Committee by my hon. Friends the Members for West Suffolk (Nick Timothy), for Bridgwater (Sir Ashley Fox) and for Mid Leicestershire (Mr Bedford), and my hon. Friends the Members for Bognor Regis and Littlehampton (Alison Griffiths) and for Dumfries and Galloway (John Cooper) performed great service as members of the Select Committee. I also acknowledge the work of officials in the Department and in Parliament. Their job cannot have been easy, given the indecent haste with which the Bill has been produced.
We disagree on much, but it would be churlish of me not to recognise that today represents a personal victory for the Deputy Prime Minister, Angela Rayner. While the Secretary of State for Business and Trade, Jonathan Reynolds and the Chancellor of the Exchequer, Rachel Reeves lie low, there is no doubt who has been in the driving seat. [Interruption.] Well, he is now. He’s here now. It is very—[Interruption.]
We welcome him to his place.
At least the Deputy Prime Minister is honest in her unwavering support for the trade union agenda. She is proud to walk in the footsteps of Neil Kinnock, Michael Foot and Jeremy Corbyn, a conviction politician in the proper sense of the word, not a politician with convictions like Mike Amesbury. It makes a welcome change—[Interruption.] Well, he’s going. It makes a welcome change from a Prime Minister who pretends the Bill is about growth.
It is not easy for the right hon. Lady. It is always awkward being at odds with your boss: he says grow, you say slow; he wants fewer regulators, you create new ones. We all remember how in 2021 she herself was a victim of fire and rehire by a bad boss. Just wait until he sees the higher unemployment, higher prices and lower growth that the Bill will bring. [Interruption.]
I’ll do that again: higher unemployment, higher prices and lower growth. No wonder the right hon. Lady is in favour of making it harder to be sacked.
This is a sad day for business and a bad day for Parliament. Business will have watched the last two days with dismay—[Interruption.] They will watch this with dismay as well, Madam Deputy Speaker. As they struggle with the Chancellor’s job tax and with the business rates hike about to hit next month, they see hundreds of pages of red tape heading their way. They will have seen the Minister yesterday, asked to name a single small business who supports the Bill, reel off the names of three large ones, two of which turned out not to support it anyway and the third was a quote from the chief inclusion officer at the Co-op. My right hon. Friend Sir Alec Shelbrooke put it well yesterday when he said the Government plan to increase the number of small businesses by starting with large ones and making them smaller.
No one who cares about Parliament legislating well can be proud of how we have got here: a rushed Bill which was introduced at half the length to which it has now grown; an impact assessment which the Regulatory Policy Committee described as not fit for purpose; over 260 pages of amendments, few of which were scrutinized in Committee; and speeches in favour that have leaned heavily in support of the trade unions who stand to gain so much financially from the Bill.
But my final word goes to the real—[Interruption.] I can do some more. The final word goes to the real victims—[Interruption.] They do not want to hear it, Madam Deputy Speaker. The final word goes to the real victims of this Bill. Faced with this legislation, employers will take fewer risks on new employees. As a result, this Bill will hit young people disproportionately hard. They do not have the track record to rely on someone giving them the chance, a first step into the world of work.
Unlike so many Labour Members, whose first job was at a comfortable desk in TUC Congress House, my first job was at a supermarket. That company was able to take a risk on a young Andrew Griffith with no career experience; it was able to take that chance because it knew that I could not start work in the morning and then file an employment tribunal claim in the afternoon.
I know that for many Labour Cabinet members career experience on their CV is a sensitive topic, but that does not excuse what is a vindictive attack on the next generation. The truth is that Labour do not understand business. They do not understand what it takes to grow; they never have and they never will. Every Labour Government have left office with unemployment higher than when they started, and that is why we cannot support this terrible Bill.
Question put, That the Bill be now read the Third time.
On a point of order, Madam Deputy Speaker. It has come to my attention that in a speech that I gave on
“I worked as a solicitor in Manchester city centre.”—[Official Report,
Vol. 579, c. 614.]
I should have made it clear that, specifically, that was a reference to being at the time a trainee solicitor. This was an inadvertent error and, although the speech was over a decade ago, as it has been brought to my attention, I would like to formally correct the record, and I seek your advice on doing so.
I thank the right hon. Member for giving advance notice of his point of order and for placing his correction on the record.