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Employment Rights Bill

My Lords, I welcome the opportunity to open the debate on this group. I intend to be brief, as is appropriate on Report—I have said it, Minister, I cannot do any more. I begin by saying that there is clear cross-party agreement that exploitative zero-hours contracts must come to an end. Indeed, we on these Benches unequivocally believe in the need to address the problems of exploitative zero-hours contracts, which leave too many workers in precarious employment circumstances. That said, our amendment reflects that shared objective, while offering a more practical and balanced view.

The amendment would change the obligation under the legislation to offer guaranteed hours to a right to request them. Further, it maintains that when such a request is made, the employer must grant it. This would allow workers to acquire guaranteed hours if they wish, providing greater security and stability, while enabling them to make a personal choice. At the same time, it would reduce the administrative burden on employers, especially in sectors that rely on flexibility.

Although we recognise that some workers do not want precarious zero-hours contracts, this should not come at the expense of sectors where flexibility is essential and many workers are content with those arrangements. This would balance security for workers with necessary flexibility for employers in sectors that rely on flexibility. These include seasonal, tourism-related and agricultural workers, as well as hospitality, retail, theatre and other industries where work patterns are inherently dynamic and demands fluctuate. The amendment would ensure that the new provisions are adaptable enough to function effectively across all those employment settings.

In Committee, Members raised understandable concerns about what would happen if a request for guaranteed hours were simply denied. Let me be clear: under this amendment, if a worker makes a formal request, the employer must make a guaranteed hours offer. It would not be optional or discretionary; all workers who wanted greater certainty would be empowered to secure it. At the same time, the amendment avoids placing a universal obligation on all employers to offer guaranteed hours in every instance, which could place undue strain on sectors that rely on that flexible staffing model. In doing so, it would deliver a fair and workable solution that respects the rights of workers while acknowledging the operational needs of these industries.

We also recognise the Government’s amendments since Committee. In particular, we welcome the steps taken to clarify how new obligations will apply to

agency workers once the legislation is enforced. These changes will help, and the framework is clear, consistent and better understood by all those affected.

That said, the Government are asking industry and business, whose support is vital for this, to prepare ultimately to comply with this provision and with the wider Act without providing any critical detail, such as reference periods for guaranteed hours and other key elements. This lack of clarity, which seems to run throughout the Bill, makes it challenging for employers and workers to understand their rights and obligations. Hindering effective implementation and planning is not acceptable. Such clarification, particularly for reference periods for guaranteed hours, is critical if the industry is expected to prepare. We on these Benches have consistently raised concerns throughout the Bill about the uncertainty caused by leaving key details, such as qualifying periods for guaranteed hours, to be declared by some later regulation. Although we agree that some flexibility is needed, it is a question of how it is implemented. We believe that clearer rules in the Bill itself will help both workers and employers to better prepare for the challenge.

Finally, as I stated at the beginning, we fully recognise the damage that exploitative zero-hours contracts can cause. However, addressing this issue must not come at the expense of sectors where flexibility is essential and many workers are content with arrangements. Our amendment seeks a fair balance, protecting workers from exploitation while preserving the flexibility that is crucial for many industries to function. I look forward to the Minister’s response and I beg to move.