---

Employment Rights Bill

My Lords, I support all the amendments in this group, but especially Amendment 1. As we start Report, and the first of several groups focusing on zero-hours contracts—although I will speak only on this group—I want to emphasise why getting the wording and balance right in this part of the Bill is important for proportionality and to avoid unintended consequences.

Many of us were originally supportive of the Bill’s commitment to tackle the rise of zero-hours contracts, especially in retail and hospitality—and tackling the way in which they have been used exploitatively is certainly welcome. But in Committee the Government acknowledged that there needs to be the offer of some flexibility, which is what certain cohorts of workers want.

On Amendment 1, the TUC briefing on the Bill complains that the vast majority who ask for guaranteed hours are turned down. Surely the point of Amendment 1 is the requirement that they will not be turned down. What is actually happening here is that there is a shift to a right to request guaranteed hours on to the employee, which I would have thought reassures the TUC. It empowers the employee but avoids an overrigid imposition of the Bill’s requirements on businesses, regardless of the situation. These sorts of details matter, now that we are finalising what will be in the Bill. I am not sure how helpful it is that, for example, some in trade union and government circles have briefed recently that getting into the details amounts to being, to quote the Deputy Prime Minister,

“on the side of bad bosses, zero-hours contracts and fire-and-rehire”.

We are here to make law, not to make headlines, and law means accepting that the devil is indeed in the detail. The Government know that there are lots of worries about unresolved aspects of the Bill. Indeed, Jonathan Reynolds, the Business Secretary, quoted in the FT recently, assures us that he is “absolutely certain” of addressing businesses’ concerns over the statutory probation period. Pertinent to this group of amendments, he says there is “more than enough room” to reach an agreement on guaranteed hours. He says:

“I have to have the bill passed first before we go into the implementation”,

but I suggest that is the wrong way around. If there is more than enough room to reach agreement on things such as guaranteed hours, let us put this in the Bill.

In other words, in trying to pin down how a new right to guaranteed hours should be framed in regulations, these amendments bring clarity. They are meant to help the Government. I am worried that too many important details are being kicked down the road,

hence avoiding democratic debate and scrutiny and creating a real mood of uncertainty among employers. We have had warnings from business about the Bill harming an already fragile economy and so on, but these kinds of concerns are trickling down to workers too.

I work with a lot of young people at the Academy of Ideas, and the initial warm enthusiasm for the Bill has gone rather cold. I have been talking to one young man who wrote a missive for us on hospitality and how much it has done for him. Omar is concerned that what he thought was going to be in his interests might turn out not to be. He says: “Hospitality is an industry that has been flexible enough to rely on youth employment and allowed many of us a way into work. It has taught me many useful lessons, and has built my confidence as a person. Now I fear that the legislation will reduce the opportunities and misses the mark”. On this amendment, he just wants the right to be able to ask for hours, but he does not want anything that disrupts the flexibility of hospitality in doing so. That echoes the balanced way in which the noble Lord, Lord Goddard of Stockport, moved the first amendment in this group.

3.45 pm

Finally, the noble Baroness, Lady Carberry of Muswell Hill, asked us to consider the balance of power. She says that young workers are least likely to understand their rights or be able to exert them. She has not met any of the young people I know—in fact, Omar is sitting below Bar there, before he goes on his shift in hospitality. I can assure her that he is more than capable of asserting and understanding his rights. The danger is that we patronise and impose on those young workers, on the basis that they will not be able to cope. That is paternalism and underestimates the young. This would give rights to young workers and would not disrupt an industry on which many of them are dependent, which is exactly the kind of proportionality that I hope the Government would welcome.