Justin Madders MP: speeches

Speeches

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  I beg to move amendment 204, in schedule 7, page 148, line 28, at end insert— “10A (1) Where— (a) a slavery and trafficking prevention order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 19 of the Modern Slavery Act 2015 (“the 2015 Act”), and (b) immediately before the day on which paragraph 53 of Schedule 6 comes into force, that requirement has not been complied with, that requirement has effect, on and after that day, as a requirement to notify the Secretary of State. (2) On and after the coming into force of paragraph 54 of Schedule 6, the reference in section 20(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking prevention order made on an application under section 15 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority. (3) In this paragraph “slavery and trafficking prevention order” has the same meaning as in the 2015 Act. 10B (1) Where— (a) a slavery and trafficking risk order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 26 of the Modern Slavery Act 2015 (“the 2015 Act”), and (b) immediately before the day on which paragraph 56 of Schedule 6 comes into force, that requirement has not been complied with, that requirement has effect, on and after that day, as a requirement to notify the Secretary of State. (2) On and after the coming into force of paragraph 57 of Schedule 6, the reference in section 27(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking risk order made on an application under section 23 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority. (3) In this paragraph “slavery and trafficking risk order” has the same meaning as in the 2015 Act.” This amendment contains transitional provision to ensure that, once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015 have been transferred to the Secretary of State, that Act continues to operate as intended. The amendment is essential to ensure the seamless and effective operation of the Modern Slavery Act 2015 during the transition of functions from the Gangmasters and Labour Abuse Authority to the Secretary of State. At its core, it is about continuity and clarity. Slavery and trafficking prevention and risk orders are critical tools in the fight against modern slavery. They impose important requirements on individuals for the purpose of protecting people from being victims of modern slavery, including requirements to notify enforcement authorities, and those obligations must remain enforceable. Without the amendment, there is a clear risk that existing legal obligations could become unclear, creating loopholes for offenders to exploit. The amendment ensures that notification requirements transfer seamlessly to the Secretary of State, safeguarding our ability to hold individuals accountable and protect victims of exploitation. It also ensures that where an application is made to vary, renew or discharge a slavery and trafficking order, the courts can treat orders originally made by the GLAA as if they had been made by the Secretary of State. That provides legal certainty for courts, enforcement agencies and affected individuals alike. This is a technical but vital amendment that protects the integrity of the legal framework and ensures continuity.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  I sense that the Opposition Members are supportive of the amendments. The shadow Minister challenged me on whether there will be any more minor or consequential amendments. I cannot give him an absolute guarantee on that; it is always an iterative process when Bills are issued; we take notice of what stakeholders say in their feedback, as well as other Government Departments. Of course, it is important that we get these things done before the Bill becomes law, by which time it is too late. I hope the Committee is reassured that there is an ongoing process to ensure that there is certainty and coherence in the legislation as we prepare for Report. Amendment 196 agreed to. Amendments made: 197, in schedule 7, page 147, line 25, after “repeal” insert “of that provision”. This amendment makes a minor drafting change. Amendment 198, in schedule 7, page 147, line 27, at end insert— “Labour abuse prevention officers 7A (1) Anything which— (a) was done by or in relation to a labour abuse prevention officer in, or in connection with, the exercise of a function conferred on the officer by virtue of section 114B of the Police and Criminal Evidence Act 1984 (“PACE”), and (b) is in effect immediately before the day on which paragraph 67 of Schedule 6 comes into force (“the relevant day”), has effect, on and after that day, as if done by or in relation to a relevant enforcement officer. (2) Anything which— (a) relates to a function conferred on a labour abuse prevention officer by virtue of section 114B of PACE, and (b) immediately before the relevant day, is in the process of being done by or in relation to such an officer, may be continued, on and after that day, by or in relation to a relevant enforcement officer. (3) In this paragraph— “labour abuse prevention officer” has the meaning given by section 114B of PACE (as that section had effect immediately before the relevant day); “relevant enforcement officer” , in relation to a function conferred by virtue of section 114B of PACE, means an enforcement officer on whom that function is conferred by virtue of that section (as it has effect on and after the relevant day).” This amendment makes transitional provision to ensure that things done by or in relation to labour abuse prevention officers before the abolition of the Gangmasters and Labour Abuse Authority continue to have effect as if done by or in relation to enforcement officers granted the equivalent powers under the Police and Criminal Evidence Act 1984 by virtue of section 114B of that Act. Amendment 199, in schedule 7, page 147, line 27, at end insert— “Warrants 7B (1) This paragraph applies to an application for a warrant under section 17 of the Gangmasters (Licensing) Act 2004 (“the 2004 Act”) which— (a) is made in England and Wales or Scotland before the day on which paragraph 42 of Schedule 6 comes into force, and (b) is not determined or withdrawn before that day. (2) The application is to be treated, on and after that day, as an application made by an enforcement officer for a warrant under section 83 of this Act. 7C (1) This paragraph applies to a warrant under section 17 of the 2004 Act which— (a) is issued under that section before the day on which paragraph 42 of Schedule 6 comes into force, and (b) is not executed before that day. (2) The warrant is to be treated for the purposes of section 83 of this Act as if it had been issued under that section. (3) That section applies in relation to the warrant as if— (a) in subsection (4)(a) , after “bring” there were inserted “any persons or”, and (b) after subsection (4) there were inserted— “(4A)On leaving any premises which an enforcement officer is authorised to enter by a warrant under this section, the officer must, if the premises are unoccupied or the occupier is temporarily absent, leave the premises as effectively secured against trespassers as the officer found them.” (4) Section ( Warrants ) and Schedule ( Warrants under Part 5: further provision ) do not apply in relation to the warrant.” This amendment makes transitional provision in relation to warrants under section 17 of the Gangmasters (Licensing) Act 2004, which is being re-enacted for England and Wales and Scotland (with some changes) as clause 83. In particular, new paragraph 7C provides that, where a warrant issued under section 17 has not yet been executed, the warrant is treated as if issued under clause 83, but any changes introduced by the Bill which would not have applied if the warrant had been executed under section 17 (in particular, the additional requirements in Part 3 of NS1) are disapplied. Amendment 200, in schedule 7, page 147, line 40, leave out “that person” and insert “the enforcing authority”.— (Justin Madders.) This amendment makes a minor drafting change.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  Schedule 6 makes consequential amendments to existing legislation to ensure consistency with the new provisions introduced by the Bill. The amendments make essential technical adjustments to the Employment Tribunals Act 1996 and the Small Business, Enterprise and Employment Act 2015, updating references and ensuring consistency between the Bill and existing legislation. Government amendment 184 omits section 19A(10A) of the Employment Tribunals Act 1996, which makes provision for the disclosure of settlement terms to an enforcement officer appointed under section 37M of the same Act. Section 37M is repealed by the Bill, as it has been superseded by the new provisions of the Bill on the appointment of fair work agency officers. Clauses 98 and 99(1) of the Bill provide gateways for the disclosure of information to fair work agency officers. Government amendment 184 repeals section 19A(10A), as the provision is no longer required in the light of the new provisions introduced by the Bill. Government amendment 188 is consequential to Government amendment 184. The amendment prevents confusion and ensures our statutory framework continues to function effectively.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  I understand what the Opposition Members are saying. They seek reassurance that there will be no disruption to the good work that goes on already, and clearly, that is our intent. We will keep a close eye on how this works when the Bill has passed and received Royal Assent. A lot of the operational questions that have been asked will emerge during that time. Whether the hon. Member for Mid Buckinghamshire remains my shadow—either of us could of course be moved on at any point—it would be perfectly reasonable for us to keep the Opposition updated on operational decisions and how the fair work agency emerges. There will of course be further parliamentary opportunities for scrutiny as more detail emerges. Question put and agreed to . Schedule 6, as amended, accordingly agreed to . Schedule 7 Transitional and saving provision relating to Part 5

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  Part 5 of the Bill lays the groundwork for the creation of the fair work agency. It involves abolishing the Gangmasters and Labour Abuse Authority and the Director of Labour Market Enforcement, and transferring their functions to the Secretary of State. Schedule 6 sets out consequential amendments that we are making to various Acts of Parliament as a result of these reforms. Part 1 of the schedule covers the consequential amendments to existing powers under relevant pieces of labour market legislation. Part 2 sets out the changes required to other Acts. The schedule is necessary to deliver a functioning and cohesive statute book and to deliver the policy intention of upgrading enforcement of workers’ rights.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  The amendments make essential adjustments to the Employment Rights Bill ensuring that there is a process for appropriate oversight of police powers used by officers within the fair work agency. There will be a subsection of enforcement officers within the fair work agency who will be able to use police powers under the Police and Criminal Evidence Act. It is important that there is appropriate oversight of officers using these powers as part of their investigations. This is not a new power. Currently, Labour abuse prevention officers within the Gangmasters and Labour Abuse Authority are able to use these Police and Criminal Evidence Act powers. Any complaints or allegations of misconduct are investigated by the Independent Office for Police Conduct, thereby ensuring that enforcement officers use their powers responsibly and within legal boundaries. The amendments ensure that the existing oversight arrangements with the IOPC can continue with the fair work agency on abolition of the GLAA. On that note, I hope the Committee will accept amendments 185, 186 and 187.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  I beg to move amendment 196, in schedule 7, page 147, line 11, at end insert— “(4A) Sub-paragraphs (1) to (3) are subject to the remaining provisions of this Schedule (and see also section 114, which confers power to make transitional or saving provision).” This amendment makes it clear that the general provision in paragraph 6 of Schedule 7 is subject to any more specific provision in that Schedule.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  Opposition Members raise the same point as before about why we have had to introduce this amendment now. I refer the shadow Minister to my previous comments on that matter; no doubt I may do so again. Both Opposition Members have rightly raised the concern about ensuring continuity when the body is instigated. Clearly, what we would expect and hope is that the day-to-day operations of enforcement officers on the ground are not impinged or affected by the creation of the agency. The Bill and a number of amendments are about ensuring that their functions continue smoothly. Amendment 193 agreed to. Amendments made: 194, in schedule 7, page 147, leave out line 6. See the explanatory statement for amendment 195. Amendment 195, in schedule 7, page 147, line 11, at end insert— “( ) an officer of the Gangmasters and Labour Abuse Authority acting for the purposes of any other enactment.” —(Justin Madders.) This amendment and amendment 194 make a minor drafting change.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  I beg to move amendment 203, in schedule 7, page 148, line 20, at end insert— “9A The repeal of section 9 of the Employment Agencies Act 1973 (inspection) by paragraph 3 of Schedule 6 does not prevent the use in evidence against a person, in criminal proceedings taking place on or after the day on which that repeal comes into force, of a statement made before that day by the person in compliance with a requirement under that section (subject to subsection (2B) of that section).” Section 9(3) of the Employment Agencies Act 1973 provides that a statement made by a person in compliance with a requirement made under that section to provide information may be used in evidence in criminal proceedings against the person. This amendment enables such a statement to be used in criminal proceedings taking place after the repeal of section 9 by the Bill. Schedule 7 sets out transitional and savings provisions ensuring a smooth changeover from the existing enforcement framework to the new provisions. That is important, as Members have debated at length already. Amendment 203 addresses the repeal of section 9 of the Employment Agencies Act 1973 and the evidentiary treatment of statements obtained under that provision. The amendment will ensure that such statements can continue to be used in criminal proceedings post repeal, subject to existing protections against self-incrimination under section 9(2B). This is a targeted, proportionate and necessary amendment, which safeguards the integrity of enforcement proceedings during a period of legislative transition. On that basis, I commend the amendment to the Committee.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  I beg to move amendment 191, in schedule 7, page 146, line 19, after “by” insert “or in relation to”. This amendment and amendment 192 ensure that things done in relation to existing enforcement officers, for example, before the coming into force of Part 5 of the Bill continue to have effect as if done in relation to the Secretary of State.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  Government amendment 193 makes transitional provision in relation to the transfer of functions of officers acting for the purposes of part 2A of the Employment Tribunals Act 1996 to the Secretary of State. That transitional provision will ensure that anything done by those officers acting for the purposes of part 2A of that Act, relating to enforcement of financial awards by employment tribunals, will continue to have effect. As such, the amendment allows for the continuity of enforcing employment rights once the Bill has passed. Amendment 194 facilitates a minor drafting change as a consequence of Government amendment 195. Amendment 195 ensures that officers of the Gangmasters and Labour Abuse Authority, acting under any enactment other than the Gangmasters (Licensing) Act 2004, are within the scope of schedule 7. That ensures that things done by them before commencement of the Bill continue to have effect after commencement. I am sure hon. Members will appreciate that the effect of the amendments is solely to ensure that the legislation is clear and unambiguous and that any activity will continue on that basis.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  Amendment 196 will ensure that there is a smooth transition in the frameworks. Amendment 198 is a transitional provision ensuring that anything done by a labour abuse prevention officer before the abolition of the GLAA continues to have effect as if done under the fair work agency. Amendment 199 is another transitional provision for warrants that have been granted under the Gangmasters (Licensing) Act 2004, but not yet executed. It allows those warrants to have the same effect as before. It is a continuation of the amendments we have debated this morning, ensuring that enforcement officers have continuity when delivering their functions.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  I think both Opposition Members who spoke were supportive of the amendments, although they raised legitimate questions about why they were necessary. As the shadow Minister pointed out, we had an ambitious timetable—a manifesto commitment—to issue the Bill within 100 days. Even when Bills are many years in gestation, there are often amendments in Committee to clarify issues, and to ensure that the Bill does what it says on the tin and is legally coherent. These amendments are an example of that process. I am sure Members appreciate how important it is that the amendments are passed, so that we can ensure that everything carries on and is as effective as possible. Amendment 191 agreed to. Amendment made: 192, in schedule 7, page 146, line 24, after “by” insert “or in relation to”.— (Justin Madders.) See the explanatory statement for amendment 191.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  The shadow Minister asked whether it is our intention to have the Bill shipshape before we send it to the other place. That is absolutely our intention, and the amendments that have been debated today are part of that. The criticism from the hon. Member for Bridgwater about the number of Government amendments has been noted. It was important that we kept to our manifesto commitment to issue the Bill within 100 days, but I have to say that when I was an Opposition Member I do not think I ever sat on a Bill Committee where the Government did not introduce their own amendments. If he is able to come up with some examples, I would be delighted to hear from him. I am afraid he will probably have to sit on a few more Bill Committees, and he will see that that is perfectly normal in the way these things work. After a Bill is published, it has more eyes on it; other stakeholders, Government Departments and agencies get to see it, and they offer views and feedback. It is right that we take account of those views and make what are often technical and minor amendments to make sure that the Bill has the intended legal effect. The hon. Member asked whether any other essential elements have been omitted. The amendments we are debating are about ensuring that the fair work agency is functioning and effective from Royal Assent. I cannot give him a guarantee that there will not be other things that come out, but we have been doing a considerable amount of work, as can be seen by the number of amendments, to make sure that the Bill will be fully operational and that there will be no effect on the day-to-day running of the work of the enforcement officers and the creation of the fair work agency. Amendment 201 agreed to. Amendment made: 202, in schedule 7, page 148, line 19, leave out from “to” to end of line 20 and insert “— (a) any information which the Secretary of State obtains by virtue of paragraph 8A; (b) any information which, immediately before the coming into force of paragraph 20 of Schedule 6, the Secretary of State holds by virtue of section 15(2) of the National Minimum Wage Act 1998; (c) any information which, immediately before the coming into force of paragraph 21 of that Schedule, the Secretary of State holds by virtue of section 16(2) of that Act; (d) any information which the Secretary of State obtains by virtue of a property transfer scheme under paragraph 2 of this Schedule.”— (Justin Madders.) This amendment and Amendment 201 would provide that information which was obtained before the coming into force of Part 5 of the Bill by officers acting under existing legislation and is held by the Secretary of State can be used or disclosed by the Secretary of State in accordance with clause 98.

• 14 Jan 2025 · Employment Rights Bill (Nineteeth sitting) · Hansard source

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  All of Buckinghamshire, yes—with the hon. Member right in the middle where he truly belongs. I do recall that the previous Government decided to set up the UK Health Security Agency in the middle of the pandemic, which was a challenging time to do that. It has been shown that the people doing the job day to day can continue to do it while the institutional reform carries on, making it more likely that they will be effective in carrying out their work through the sharing of resources, evidence and expertise, as well as, hopefully, a more unified approach to enforcement. Clearly, we want those doing the day-to-day work to be able to carry on doing that and a number of these amendments enable them to do that. We hope that, as the agency forms and more joint working is developed, they will become more effective. Amendment 104 agreed to. Amendments made: 105, in schedule 6, page 140, line 26, at end insert— ‘(4A) In subsection (10), for “Any other” substitute “A”.’ See the explanatory statement for amendment 104. Amendment 106, in schedule 6, page 140, line 27, leave out sub-paragraph (5) and insert— ‘(5) For subsection (11) substitute— “(11) In this section— “enforcement officer” has the meaning given by section 72(3) of the Employment Rights Act 2025; “labour market offence” has the same meaning as in Part 5 of that Act (see section 112(1) of that Act).”’ —(Justin Madders.) See the explanatory statement for amendment 104.

• 13 Jan 2025 · Draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 Draft Unique Identifiers (Application of Company Law) Regulations 2024 · Hansard source

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  I am pleased to hear that the shadow Minister has already started using the acronym ACSP, which is very encouraging—I am sure it will enter the vernacular shortly. In terms of the cost to businesses of individual identity verification, it will be free to businesses to log in. It is estimated that on average it will cost £10.50 to verify an individual’s identity and £2.10 to confirm verification for each appointment held. It is estimated in the impact assessment that the annual cost to UK businesses will be about £19.5 million in ongoing operational expenses. It should be said that we believe that this measure will be of benefit to legitimate businesses, enabling them to move forward with confidence that they are who they say they are. Of course, the companies register is estimated to be worth up to £3 billion to the UK economy each year, due to the amount of information that is available free to the public. The hon. Gentleman also asked about the cost to Companies House. He will be aware that incorporation fees have been increased in recent times. Indeed, an economic crime levy has also been apportioned to Companies House, to recognise the fact that there are substantial new demands on it, and there are not substantial numbers of new staff that have been recruited to undertake these activities. However, there is no intention to increase the cost to the Treasury; rather, it is expected that these costs will be generally recovered through Companies House activities. My understanding is that the second set of regulations would not have attracted an impact assessment due to the estimated cost to individual businesses. I will double-check that point for the hon. Gentleman and write to him if that proves to be incorrect, but I think it is normally the case that there is a £5 million floor on impact assessments, and my understanding is that these regulations did not exceed that; therefore, no impact assessment was required. On that note, I thank hon. Members for their time, and I commend the regulations to the Committee. Question put and agreed to. DRAFT UNIQUE IDENTTIFIERS (APPLICATION OF COMPANY LAW) REGULATIONS 2024 Resolved, That the Committee has considered the draft Unique Identifiers (Application of Company Law) Regulations 2024.— ( Justin Madders.)

• 13 Jan 2025 · Draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 Draft Unique Identifiers (Application of Company Law) Regulations 2024 · Hansard source

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  I beg to move, That the Committee has considered the draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024.

• 13 Jan 2025 · Draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 Draft Unique Identifiers (Application of Company Law) Regulations 2024 · Hansard source

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  It is a pleasure to see you in the Chair, Mr Stringer. The registrar regulations were laid before the House in draft on 22 May 2024, and the unique identifiers regulations were laid before the House in draft on 31 October 2024. They form part of a programme to implement the Economic Crime and Corporate Transparency Act 2023. The 2023 Act is a landmark piece of legislation that delivers the most significant reforms to Companies House in more than 180 years, in order to protect the public from fraud and deliver real benefits to the business community. There has already been much progress since the Act was passed, including the introduction of stricter rules and checks to help Companies House to cleanse the register. The two sets of regulations before us will help to implement perhaps the most important changes to the UK’s company registration framework in the Act, requiring identity verification for those setting up, running and controlling companies. The 2023 Act amended the Companies Act 2006 to establish two ways in which an individual can verify their identity: either directly with Companies House or via an authorised corporate service provider, which I will refer to as an ACSP. The providers must be supervised for anti-money laundering purposes and registered with Companies House. I will set out specifically what the two instruments do. The draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 set out the legal framework that underpins identity verification. The identity verification procedure will involve an individual delivering specific information to the registrar or to an ACSP, which must include their name, date of birth and any further information specified in the registrar’s rules, which are a form of tertiary legislation. Given the technical and increasingly evolving mechanisms for identity verification, it would be inappropriate to list every single identity document that must be provided to the registrar or an ASCP, or every single step that an individual must take in the regulations. Instead, the registrar is enabled to specify the requirements in a more suitable form and adapt or tweak the detail quickly where necessary. Companies House has produced a draft version of the registrar’s rules—I hope that they are in the Committee Room for Members to see—which I hope will provide some examples of the kind of information that might be required from applicants. When the registrar or ACSP receives all the correct information from an applicant, they will grant the identity verification application if they are satisfied that the information provided is true. That is the broad legal process for identity verification. In practice, Companies House will use the gov.uk One Login platform to deliver its identity verification service. One Login is a cross-government verification platform that enables users to have a single login and verified identity for multiple government services. An individual will create an account and can verify their identity using a range of evidence, such as a passport or driving licence, or through knowledge-based verification questions based on their credit record or banking information. The process also includes checks to ensure that the individual matches the picture on their photo ID. For most people completing the purely digital route, the process will take a matter of minutes. Individuals can also complete the process in person at a post office. If an individual decides to verify via an ACSP, the ACSP must follow the legal procedure established in these regulations and in the registrar’s rules. Companies House will issue guidance to ACSPs to explain how the procedure should be applied in practice and what checks they must perform on the information received. That will ensure that both routes achieve the same level of assurance in identity verification. Once an ACSP verifies an applicant’s identity, it will deliver a verification statement to Companies House to confirm that it has followed the correct procedure. The verification statement will be published alongside the applicant’s appointments on the register to maximise transparency. Alongside this verification statement, ACSPs must give the registrar information about the evidence they relied on to verify an individual’s identity. That means that Companies House will not lose access to crucial identity data if someone uses an ACSP and will also be provided with an assurance that the identity checks have been completed correctly. The regulations add other checks and balances to the ACSP regime. ACSPs will be required to maintain records relating to the identity verification for seven years from the date they determined the identity verification request. The registrar can suspend and de-authorise an ACSP if they do not consider it to be fit and proper to carry out the functions of an ACSP. Finally, the registrar can perform spot checks on ACSPs and ask them to provide information about their identity verification obligations. All those provisions combined ensure that Companies House has the tools at its disposal to ensure that the ACSP regime is as effective and robust as possible. I now turn briefly to the second set of regulations, the draft Unique Identifiers (Application of Company Law) Regulations 2024. These are technical and apply provisions on unique identifiers contained in the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 to other entities. A key mechanism underpinning the operation of identity verification is the use of a unique identifier or personal code, which we use to identify individuals who have had their identity verified, as well as registered ACSPs. The first set of regulations we covered will enable allocation of unique identifiers to individuals associated with companies. These regulations give the registrar the power to allocate unique identifiers to ACSPs and individuals associated with other entities, namely limited partnerships, limited liability partnerships, companies authorised to register, unregistered companies, and Scottish qualifying partnerships. Identity verification requirements will eventually apply to other entities registered at Companies House, so it is necessary that we make these regulations relating to unique identifiers to ensure these requirements can operate in practice. Finally, I want to update the Committee on the timings of identity verification. Companies House published its outline transition plan last October, which confirmed that it aims to start requiring identity verification from autumn of this year. In a few weeks, ACSPs will be able to register and individuals will be able to voluntarily verify their identity with Companies House, giving people lots of time to complete the process before legal requirements actually start.

• 9 Jan 2025 · Employment Rights Bill (Eighteenth sitting) · Hansard source

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  That is a perfectly reasonable question. It is dealt with in the clauses, which we are about to debate and which address the requirement for the board to set out an annual report and strategy. That will inform the Secretary of State of the direction of travel of the fair work agency. Again, this is not an unusual arrangement. If we believe, as we do on the Government Benches, that the fair work agency needs an advisory body—I cannot recall any person or organisation who submitted evidence to the Committee suggesting that that was not an appropriate idea—the logical conclusion of what the hon. Member for Bridgwater suggests is that the Bill should name every single person on it. That is not a practical way to proceed. I suggest that a huge mountain has been made out of a small molehill. This is an established practice that has worked well and has been seen to work well, and it has support from many stakeholders. It is entirely in line with what we seek to achieve. Question put and agreed to. Clause 75 accordingly ordered to stand part of the Bill . Clause 76 Labour market enforcement strategy Question proposed, That the clause stand part of the Bill.

• 9 Jan 2025 · Employment Rights Bill (Eighteenth sitting) · Hansard source

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  I am grateful for the general support. The shadow Minister has raised some fair questions and articulated the frustration we all feel when trying to deal with certain organisations. I know it is a Thursday afternoon, but I could talk for some time about how my satellite TV provider has proven quite elusive when I have tried to speak to an individual. I think I can put the shadow Minister’s mind at ease on this issue. Clearly, the purpose of the undertakings is to encourage compliance, so an undertaking will not appear out of thin air, but will be the result of an ongoing conversation between the employer and the fair work agency. Clause 87(6) specifies that notices or undertakings can be sent by electronic means only if “the person has indicated that notices under section 84 may be given to…an electronic address” and in a particular format, so there is already a safeguard in the Bill to ensure that those messages do not go missing. The whole purpose of an undertaking is that there is an agreement between both parties that there will be compliance, so it would not be in the fair work agency’s interest to send things to addresses or places where it was not confident that they would be received. It is all about encouraging compliance, and that is the purpose of the clauses we have just debated, so I commend them to the Committee. Question put and agreed to. Clause 84 accordingly ordered to stand part of the Bill. Clauses 85 to 87 ordered to stand part of the Bill. Clause 88 Power to make LME order on application Question proposed, That the clause stand part of the Bill.

• 9 Jan 2025 · Employment Rights Bill (Eighteenth sitting) · Hansard source

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  Enforcement officers need the powers to do their jobs effectively, and that is what we are providing through the Bill. Clause 95 introduces a key safeguard around carrying out the enforcement functions in part 5 of the Bill. It applies to any person proposing to carry out an enforcement function of the Secretary of State and to exercise any of the powers of an enforcement officer. It requires those persons—in practice, fair work agency inspectors—to provide evidence of their appointment when carrying out investigations or taking enforcement action. That evidence will be in the form of official identification, sometimes referred to as a warrant card, provided by the Department. Existing enforcement bodies provide such evidence currently. For example, section 9(1) of the Employment Agencies Act 1973 requires inspectors of the employment agency standards inspectorate to show evidence of their authority “if so required”. We have mirrored that approach in clauses 95 to 97. Persons acting to carry out the Secretary of State’s enforcement functions and use the powers of enforcement officers will have to provide evidence of their appointment on request. That gives businesses the opportunity to satisfy themselves that an inspection, which is an inconvenience and costs time and money, is genuine. The fact that the clause requires officers to provide this evidence only on request reflects the fact that the fair work agency’s inspectors are likely to be in correspondence with businesses before their premises visit. The way in which we have drafted the clause is proportionate and reflects existing best practice. It balances having an important safeguard in place with ensuring that that does not create unnecessary operational burdens. I therefore commend clause 95 to the Committee.

• 9 Jan 2025 · Employment Rights Bill (Eighteenth sitting) · Hansard source

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  I will not detain the Committee long. Schedule 5 is the list of bodies with which information can be shared, which obviously now includes the Pensions Ombudsman. As I have indicated, any further bodies would need to be added to the list by affirmative regulations.

• 9 Jan 2025 · Employment Rights Bill (Eighteenth sitting) · Hansard source

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  Clause 105 applies the offences in part 5 of the Bill to corporate bodies. It is a standard clause that can be found in predecessor legislation, such as section 27 of the Immigration Act 2016. The clause ensures accountability at both the organisational and individual levels, and practicality in legislation. It makes certain that those complicit in the offence can be held personally liable. Clause 106 applies the offences in part 5 of the Bill to partnerships; clause 107 applies them to unincorporated associations. Subsections (5) and (6) of clause 107 specify that liability is attached to those who committed the offence with consent or who were negligent regarding the offence, as well as to the association. Unincorporated associations play a significant role in various sectors, including sports and community services. These two clauses ensure that all business structures are subject to enforcement. They are standard clauses that are found in predecessor legislation, such as section 30 of the Immigration Act 2016. Clause 108 sets out how the provisions of part 5 of the Bill relating to the enforcement of labour market legislation apply to the Crown and parliamentary estate. Clause 108(1) provides that all provisions in part 5 are binding on the Crown. Subsection (2) defines Crown premises as any premises “held or used by or on behalf of the Crown”. This means that fair work agency inspectors can enter and inspect Crown premises using powers set out earlier in the Bill. We believe this is right. The Crown employs individuals who are entitled to rights in scope of the fair work agency’s remit. The clause will enable officers to carry out investigations and gather information to ensure that the rights of Crown employees are as effectively enforced as other employees’ rights. The clause also contains certain exemptions that we believe are justified. First, subsection (6) exempts the King’s private estates from the powers of entry. The King’s private estates are defined in the Crown Private Estates Act 1862. They are distinguished from Crown premises. They are not defined as premises used in connection with Crown business and employing staff. Secondly, subsection (6) also exempts “premises occupied for the purposes of either House of Parliament” from the powers of entry. The main premises we would expect the fair work agency to enter in relation to Parliament would be the offices of MPs and peers. The wording here ensures that the exemption is wide enough to exempt Members’ offices in the Palace of Westminster and those beyond it. This exemption reflects standard practice. I want to draw the Committee’s attention to amendments we have tabled for national security reasons. Clause 108(5) of the Bill as introduced enables the Secretary of State to exempt Crown premises from powers of entry where they deem it necessary for national security reasons. The starting point of the current drafting is that powers of entry apply generally and need to be disapplied. The exemption applies only to investigations of Crown premises that would have national security implications. Government new clause 49 restricts the exercise of powers in clauses 78 and 79 in relation to the intelligence services, unless the Secretary of State is satisfied that use of the powers would not be prejudicial to national security, the prevention or detection of serious crime, or the economic wellbeing of the UK. The new clause requires the Secretary of State to issue a certificate before the powers can be exercised. Government amendment 182 amends clause 108(1) to provide textual consistency and ensure the new clause functions as intended. Our amendments strike a balance to ensure that the fair work agency is able to investigate the security agencies where necessary, while also ensuring that the powers are not used in a way that could damage the UK’s security interests. Question put and agreed to. Clause 105 accordingly ordered to stand part of the Bill. Clauses 106 and 107 ordered to stand part of the Bill. Clause 108 Application of this Part to the Crown Amendment made: 182, in clause 108, page 100, line 2, after “of” insert “section (Information relating to the intelligence services, etc) and”.— (Justin Madders.) This amendment is consequential on NC49. Clause 108, as amended, ordered to stand part of the Bill. Clause 109 Abolition of existing enforcement authorities Question proposed , That the clause stand part of the Bill.

• 9 Jan 2025 · Employment Rights Bill (Eighteenth sitting) · Hansard source

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  Clause 102 addresses the need for accountability and compliance with labour market enforcement orders. It creates a clear offence of failing to adhere to a labour market enforcement order without reasonable excuse, sending a strong message that non-compliance will not be tolerated. The clause ports over the existing offence in section 27 of the Immigration Act 2016 and does not create a new offence. The clause is essential to ensure that labour market enforcement orders hold real weight and authority in our legal framework. The penalties under clause 102 are designed to be fair yet firm, with varying limits for summary conviction in England, Wales, Scotland and Northern Ireland, and up to two years’ imprisonment or fine on conviction on indictment. The range of penalties enables the courts to respond proportionately to the severity of each offence, ensuring that justice is both accessible and effective across the UK. By maintaining meaningful penalties, we maintain a powerful deterrent against non-compliance, which encourages individuals and businesses to uphold their obligations and respect labour laws. The approach we have taken in the clause emphasises both accountability and fairness, ensuring consistent enforcement across jurisdictions. I turn to clause 103. For the fair work agency to enforce effectively, it needs to rely on the information it gathers. Providing false information slows investigations down and slows down justice for workers. The clause therefore carries over and consolidates offences from predecessor legislation to create a single offence of providing false information. The clause provides that an offence is committed when a person “produces, or knowingly causes or allows to be produced, any information or document” that is materially false. It provides that an offence is committed when the person providing information is either aware that it is false when providing it or has not taken reasonable action to confirm its accuracy. The clause also sets out the penalties applicable in England, Wales, Scotland and Northern Ireland. It is right that falsifying documents should carry a criminal penalty. Clause 104 provides a vital tool in the arsenal of our labour enforcement officers. Employment rights enforcement is generally a civil regime, founded on consensual investigations. That is right and proportionate, but it is important that there is a clear course of action when individuals block or stymie investigations. The clause creates a single offence for anyone who intentionally obstructs an officer or fails, without reasonable excuse, to comply with their lawful requirements. In doing so, the clause consolidates similar offences in the predecessor legislation for the current enforcement bodies. Clause 104 is fundamental to ensuring that enforcement officers can perform their duties without interference, which is essential for effective labour market oversight. Obstructing officers’ work undermines these efforts, delaying investigations and weakening compliance. The clause directly addresses this issue by establishing clear consequences for those who intentionally hinder enforcement officers in the execution of their duties. The penalties in the clause are proportionate but firm, with tailored limits across UK jurisdictions. This approach ensures consistent consequences for obstruction, reinforcing compliance with employment rights law and protecting workers’ rights, fostering a safer and fairer labour market.

• 9 Jan 2025 · Employment Rights Bill (Eighteenth sitting) · Hansard source

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  The clause introduces schedules 6 and 7, which make consequential amendments and transitional provisions required to deliver this change. Schedule 6 sets out consequential amendments we are making to various Acts of Parliament as a result of these reforms. Part 1 of schedule 6 covers the consequential amendments to existing powers under relevant pieces of labour market legislation. Part 2 of the schedule sets out the changes required to other Acts. Schedule 7 sets out transitional and savings provisions we need in place to set up the new body. Part 1 of schedule 7 gives powers to the Secretary of State to make transfer schemes to move staff, property, rights and liabilities of the GLAA and DLME to the Secretary of State. Part 2 of schedule 7 provides for other necessary transitional provisions, such as to ensure that smooth sharing of information can continue and to retain provisions that devolved legislation relies on. The clause and the schedules it introduces are necessary to deliver a functioning statute book and to deliver on the policy intention of upgrading enforcement of workers’ rights.