Justin Madders MP: speeches

Speeches

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

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  The shadow Minister was quite right to refer back to our earlier debate on flexible working. Today, he certainly is the man with the golden pun, but this set of rules is slightly different: it still allows the intelligence services to be dealt with, whereas I think his proposal would have excluded the intelligence services altogether. The requirement is just that the Secretary of State is satisfied that the inspections and powers are necessary. Of course, when dealing with highly sensitive intelligence documents, we would want such safeguards, so I am pleased that he supports our measures. Question put and agreed to. Clause 79, as amended, accordingly ordered to stand part of the Bill. Clause 80 Supplementary powers in relation to documents 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 sure if we had a Division on that, there would be some interesting comments. It can be difficult to keep up, but your understanding of the current grouping, Sir Christopher, is as mine, which is always an encouraging start. Turning to clause 79, all the existing employment rights enforcement bodies have powers to enter premises and inspect workplaces to gather information to inform their investigations, but each body’s powers are different and some of them are now very out of date. Clause 79 therefore introduces a single power to enter into any relevant premises to obtain information or documents. The clause has been drafted with the aim of continuing the current approach to enforcement and compliance, so in general, an officer will agree a time for their visit with the employer in advance and arrange the visit at a reasonable time during business hours. However, it allows an officer to turn up unannounced if they have reasonable grounds to believe that an employer may frustrate entry. The clause gives power to an officer to inspect or examine any documents on the premises. The officer may also require any person on the premises to produce documents that the officer has grounds to believe are on the premises and are within their control or possession. If the person cannot provide the necessary documents, they will be able to provide them to the officer at a later time and date. An officer can also have access to, and check the operation of, any computer or equipment, as such devices may store information that is necessary for the purposes of an investigation. The clause also allows the officer to seize any documents produced on the premises that may be necessary for the investigation. To enter a dwelling, as we have discussed, an officer will have to obtain a warrant from a justice. That reasonable safeguard protects the rights of all individuals to family life whilst allowing agents to carry out all the vital work they need to protect the rights of workers. New clause 49 will restrict the exercise of powers in clauses 78 and 79 in relation to the intelligence services, unless the Secretary of State is satisfied that using the powers would not be prejudicial to national security, the prevention and detection of serious crime and the economic wellbeing of the UK. The new clause requires the Secretary of State to issue a certificate of satisfaction before the powers can be exercised. Conditions on the exercise of either power may also be imposed if necessary. Subsection (5) also states that, other than as provided for in the clause, “nothing in this Part requires any person to…produce” or disclose any document or information “containing intelligence service information”. Government amendment 182 is consequential on Government new clause 49. Clause 108, as introduced, sets out that the enforcement provisions in part 5 generally apply to Crown premises and the parliamentary estate. Clause 108(5) enables the Secretary of State to prevent powers of entry from being exercised in relation to Crown premises when that is deemed necessary for national security reasons. Government amendment 182 amends clause 181 to provide textual consistency and to ensure that new clause 49 functions as intended. The amendments strike a balance to ensure that the fair work agency does not inadvertently act in a way that could be prejudicial to key national interests that the intelligence services work hard to protect, while also enabling those services to be investigated like other employers. This is vital to ensure that there is not a two-tier system of enforcement whereby some workers have less protection than others because of who their employer is. I turn to Government amendment 181. Clause 101 imposes restrictions on the disclosure of intelligence service information, which is necessary to protect such information. It also defines “intelligence service information” for the purposes of that restriction. However, new clause 49 contains a slightly different definition, so Government amendment 181 amends that in clause 101 so that it is consistent with the definition in new clause 49(6)(c). Government amendments 177 to 179 are technical amendments that are consequential on Government amendment 181. They make changes to the definition of “appropriate service chief” in clause 101(4). This is necessary as a result of the amendment to the definition of “intelligence service information” in clause 101 that is made by Government amendment 181. These technical amendments insert wording to clarify who the relevant service chief is in relation to information that has been received directly or indirectly from, or in relation to, each of the intelligence services. This addition is intended to capture information that may be obtained or held by third parties that relates to the intelligence services. The amendments are part of a series of measures that are intended to balance the need to ensure that intelligence service information is protected, enabling the intelligence services to continue to do their important work, while also ensuring that the fair work agency can exercise relevant powers when necessary. As we have already heard, part 5 of the Bill contains provisions that provide the building blocks that we will use to create the fair work agency. Several measures in the part, including some new clauses and amendments, are intended to specify how investigatory enforcement powers apply in relation to the intelligence services. They contain exemptions that are necessary to balance the protection of national security while ensuring that the fair work agency can still investigate when appropriate. Clause 101 defines GCHQ and the intelligence services for clarity. If the amendments and new clauses are agreed to, those terms will be used more widely. The amendments are a technical change to ensure that the defined terms are repositioned to clause 112, which defines terms as they apply across part 5.

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

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  The shadow Minister makes a reasonable point. Of course, this will all be subject to data protection legislation and the safeguards contained therein. It is also the case that, if the Secretary of State wishes to expand the list of bodies with which information is shared, there is a requirement to amend that list by way of affirmation regulation, giving parliamentary oversight. Question put and agreed to. Clause 98 accordingly ordered to stand part of the Bill. Schedule 5 Persons to whom information may be disclosed under section 98

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

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  It is a pleasure to see you in the Chair, Sir Christopher. As always, I will start by referring to my entry in the Register of Members’ Financial Interests. Following the reference to illumination, I hope to shed light on the advantages of a fair work agency. We have heard a fair amount of criticism from the Opposition Benches about the suggestion that we set up an advisory board. The shadow Minister asked whether a Member of Parliament could apply to be on it. I do not think that it is entirely clear whether they could. I do not know whether the prohibitions on second jobs for MPs have that scenario in mind, but I imagine that it could fall within the prohibition relating to advising on areas of policy. I also hope that all Members are fully engaged in their day-to-day work of representing their constituents and will not feel it necessary to apply. Indeed, we will play a role here in scrutinising the work of the fair work agency. Given the comments of the hon. Member for Bridgwater, he will not be making an application, in any event. On the point that academics could also be members of a trade union and could therefore fit into more than one category, anyone in a free society is entitled to join a trade union should they wish to do so. We would not want to make it a condition for job applicants to have to state their trade union membership—that is a slightly McCarthyist road to go down—but members of the Low Pay Commission are already required to declare any interests, including membership of trade unions or political parties. There is an opportunity for transparency in that sense. As my hon. Friend the Member for Birmingham Northfield says, the pro forma definitions in the Bill are not novel interpretations. They are tried and tested definitions—I would like to say “trusted” as well, but it is clear that the hon. Member for Bridgwater does not trust us to operate them in the way they have operated in the past—of how people are appointed to such bodies. As has been noted, they have worked successfully for the Low Pay Commission for a quarter of a century. The shadow Minister was accused of over-egging the pudding, but the hon. Member for Bridgwater broke enough eggs in his criticisms to feed us all for the next month. I think he suggested that we did not need an advisory board at all, which suggests that he does not believe it important that the voice of business have input into the work of the fair work agency. He also said that we did not need more reports, which is one of the roles of the advisory board, and yet only a couple of hours ago he voted for a report into the application of the fair work agency. What he was getting at is that if we have to have this, we need to be assured that there is no jiggery-pokery about who will be appointed to it.

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

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  Fair points were made by the Opposition spokespeople. Clearly, the Secretary of State is ultimately responsible to Parliament for the operation of the fair work agency and the use of powers by enforcement officers. I expect that will ensure that there is oversight at least on a parliamentary level. On an operational level, there will also be an opportunity for the advisory body to be involved. On the modernisation of the rules, I understand that that applies only to the employment agency standards inspectorate, because the other bodies already have those powers. It is not a dramatic extension of the existing powers that are already in place. Question put and agreed to. Clause 78, as amended, accordingly ordered to stand part of the Bill. Clause 79 Power to enter business premises in order to obtain documents, etc

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

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  Our aim is that the fair work agency will bring together existing state enforcement functions in one place. Delivering this aim means abolishing two existing bodies involved in enforcement of workers’ rights—the Gangmasters and Labour Abuse Authority and the Director of Labour Market Enforcement—and transferring their functions to the Secretary of State. Clause 109 does that. The function of enforcing the licensing regime for gangmasters and the GLAA’s responsibilities for enforcing aspects of the Modern Slavery Act 2015 will be transferred to the Secretary of State and carried out by fair work agency enforcement officers. The Director of Labour Market Enforcement’s oversight and reporting functions will also be transferred to the Secretary of State. They are replaced by the new duties on the Secretary of State set out in clauses 75 to 77. Clause 75 requires the Secretary of State to set up an advisory board, and there are also the requirements on an enforcement strategy and annual report. Abolishing these two bodies is a key part of streamlining the current system of employment rights enforcement, which is fragmented and ineffective. It is not about reducing functionality or enforcement capability. In fact, because of the reforms we are making, we hope that the fair work agency will be greater than the sum of its parts. Employment rights will be enforced more effectively and efficiently, which will be fairer for businesses and workers, and there will be greater clarity on where people need to go to seek help.

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

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  I beg to move amendment 86, in clause 78, page 83, line 6, leave out “to ascertain” and insert “the purpose of ascertaining”. This amendment makes a minor drafting correction.

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

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  Clause 78 will confer a power on the Secretary of State—although in practice it will be delegated to enforcement officers—to require a person to provide documents or information relevant to an investigation. This is a vital power, and a common power for enforcement agencies to have. It is right that its use be clearly defined. Clause 78(3) defines “enforcement purpose” in relation to the power; Government amendment 86 will make a small drafting correction so that the definition is consistently drafted. This is a technical change, but one that will make sure that this key power is easy to interpret and understand. Government amendment 90 similarly clarifies the definition of “enforcement purpose”, in this case for the powers of entry in clause 79. As drafted, the Bill has identical definitions of enforcement purposes in clauses 78 and 79, with clause 79 relying on the definition in clause 78. However, these are different powers and the wording on enforcement purposes in clause 78 does not neatly match the provisions of clause 79. It is right that the wording of the definition of “enforcement purpose” in clause 79 should better reflect what the clause says. This amendment therefore clarifies the definition to tailor it to powers of entry. This is, again, a technical change, but one that will make sure that this key power is easy to interpret and understand. I commend the amendments to the Committee.

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

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  The clause provides a safeguard to ensure the protection of any document or information that is subject to legal professional privilege. Such documents or information do not have to be provided in response to any enforcement action by the fair work agency. As Members will know, legal professional privilege is a well-established principle, and refers to a person’s ability to speak freely and frankly with their legal adviser to obtain advice. It is a key principle in the judicial system in this country. Practically speaking, the clause means that no provisions relating to the enforcement of labour market legislation —those in part 5 of the Bill—can require a person to produce documents or information they are entitled to withhold on grounds of legal professional privilege in High Court proceedings in England and Wales. The same is true of documents or information a person is entitled to withhold in Court of Session proceedings in Scotland. No provisions in the enforcement clauses can compel someone to disclose information they could choose to withhold on the grounds of confidentiality of communications. The clause defines communications for this purpose as any communication between a professional legal adviser and their client or as any communication made, connected with or for the purposes of legal proceedings. Protecting legal professional privilege helps to protect the administration of justice and the rights of individuals and other legal persons. It is a well-recognised concept that appears in many other pieces of legislation. For example, section 42 of the Freedom of Information Act 2000 exempts from disclosure information subject to legal privilege. The fair work agency will have strong investigatory enforcement powers. Those are proportionate and justified, and it is important that, where investigations do happen, defendants are able to communicate frankly with any legal advisers representing them. I therefore commend the clause to the Committee.

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

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  The shadow Minister raises some fair points. I commend him for the work he does on the loan charge, and that all-party group is important. Certainly, HMRC’s functions in terms of the fair work agency will be focused on national minimum wage enforcement. I do not think that that is an area where we have some of the difficulties the shadow Minister referred to, but of course we will make sure. The intention in the clause is to make sure that appropriate safeguards are indeed in place. Question put and agreed to . Clause 100 accordingly ordered to stand part of the Bill. Clause 101 Restriction on disclosure of intelligence service information

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

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  I beg to move amendment 101, in schedule 6, page 133, line 7, at end insert “and the italic heading before that section.” This amendment makes a further consequential amendment to the National Minimum Wage Act 1998.

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

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  I thank the shadow Minister for destroying any career prospects that I might have had. I certainly believe that the first publication would be of sufficient magnitude for an oral statement to the House. As a Minister I would certainly want to give such a statement, although whether it happens is outside my gift, as the shadow Minister knows. As we do not know when it will happen, or indeed whether either of us will be in the same role by that point, I can probably say no more. Perhaps I will be doing something else, or nothing at all. Who knows? I certainly think that the first publication of the strategy would warrant an oral statement, but for the reasons that I have outlined, I cannot make a cast-iron promise. Question put and agreed to. Clause 76 accordingly ordered to stand part of the Bill. Clause 77 ordered to stand part of the Bill. Clause 78 Power to obtain documents or information

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

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  Data from His Majesty’s Revenue and Customs will be crucial for the investigation and enforcement of many different employment rights beyond the national minimum wage, which HMRC is specifically tasked to enforce on behalf of the Secretary of State. However, much of HMRC’s data is understandably confidential, and it is therefore prudent to require an extra level of approval before information shared by HMRC is disclosed further. The clause restricts the disclosure of that information without authorisation from the commissioners of HMRC. If information is inadvertently shared without approval, section 19 of the Commissioners for Revenue and Customs Act 2005, on wrongful disclosure, applies. The result could be a fine and/or imprisonment for the individual committing the offence. The clause ensures information-sharing best practice across Government and puts in place an appropriate safeguard around the sharing of HMRC data.

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

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  This is a large grouping again, and I will turn first to Government amendments 97 to 100. Open, two-way information sharing with the regulator is what clause 98 and schedule 5 are all about. These amendments add Scottish health bodies to schedule 5, which will support those bodies in fulfilling their functions. This has been agreed by Scottish Government officials and the bodies themselves. Amendment 97 also adds the Pensions Ombudsman to schedule 5. Fair work agency inspectors may come across useful pension information that will help the Pensions Ombudsman in its duties, and it is right that they can share that information. The amendments stand to benefit the bodies concerned and the public by allowing the Secretary of State to share information obtained by the fair work agency that is relevant to the functions of those bodies. Amendments 171 to 174 are about where the fair work agency, in fulfilling its statutory duties, is likely to obtain information that would be beneficial to other statutory bodies. Clause 98(5) gives the Secretary of State the power to disclose certain information to the persons specified in schedule 5. Amendments 171 to 174 add additional public bodies in the devolved nations to schedule 5. Amendment 171 adds the National Crime Agency, amendment 172 adds Social Care Wales, amendment 173 adds the Health and Social Care Regulation and Quality Improvement Authority in Northern Ireland, and amendment 174 adds Welsh Ministers. The amendments will enable information obtained in connection with the exercise of part 5 enforcement functions to be disclosed to those bodies for the purposes of their functions. The amendments stand to benefit those bodies and the public by allowing the Secretary of State to share information with those bodies that is obtained by the fair work agency and that is relevant to its functions, where the disclosure is relevant to the exercise of those bodies’ own functions. The amendments have all been agreed by the relevant bodies, and on that basis I commend them to the Committee.

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

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  These are minor amendments to ensure that there is consistency between the general power of entry in clause 79 and the power of entry under clause 83. They provide for a consistent approach, which will be easier and simpler to understand. This is a technical change, but one that will ensure that these key powers are easy to interpret and understand.

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

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  The shadow Minister lays down a challenge for me. On the Pensions Ombudsman—I will certainly write to him if anything occurs to me after consultation with officials—it is not unusual for an individual’s payslip or contract to indicate that pension deductions have been made, when they have not actually reached the appropriate pension funds. That may be one example of where such a reference could be made. The shadow Minister will be aware from the Low Pay Commission’s recent reports that health and social care are the sectors where some of the worst labour market abuses are ongoing, so it is important that we are sighted of particular issues in those sectors. I will take further advice on any other specific examples I might be able to give him, and I will write to him in due course. Amendment 97 agreed to. Amendments made: 171, in schedule 5, page 130, line 29, at end insert— “The National Crime Agency.” This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to the National Crime Agency for the purposes of its functions. Amendment 98, in schedule 5, page 131, line 20, at end insert— “Healthcare Improvement Scotland.” This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to Healthcare Improvement Scotland for the purposes of its functions. Amendment 99, in schedule 5, page 131, line 20, at end insert— “Social Care and Social Work Improvement Scotland.” This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to Social Care and Social Work Improvement Scotland for the purposes of its functions. Amendment 100, in schedule 5, page 131, line 20, at end insert— “The Scottish Social Services Council.” This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to the Scottish Social Services Council for the purposes of its functions. Amendment 172, in schedule 5, page 131, line 20, at end insert— “Social Care Wales.” This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to Social Care Wales for the purposes of its functions. Amendment 173, in schedule 5, page 131, line 20, at end insert— “The Health and Social Care Regulation and Quality Improvement Authority in Northern Ireland.” This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to the Health and Social Care Regulation and Quality Improvement Authority for the purposes of its functions. Amendment 174, in schedule 5, page 131, line 23, at end insert— “The Welsh Ministers.” —(Justin Madders.) This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to the Welsh Ministers for the purposes of their functions. Question proposed, That the schedule, as amended, be the Fifth schedule to the Bill.

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

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  I beg to move amendment 97, in schedule 5, page 130, line 22, at end insert— “The Pensions Ombudsman.” This amendment would enable information obtained in connection with the exercise of enforcement functions under Part 5 of the Bill to be disclosed to the Pensions Ombudsman for the purposes of the Ombudsman’s functions.

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

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  On clause 98, regulators and enforcement agencies must be able to work together effectively to share information and pool knowledge. For example, if the fair work agency identifies issues with health and safety in the course of its investigations, it should be able to let the Health and Safety Executive know, and vice versa. Silo working is bad for workers, bad for businesses and bad for the taxpayer. Clause 98 is about preventing silo working. It authorises the two-way sharing of information between the fair work agency and other bodies. It introduces schedule 5, which lists the public bodies with which information can be shared to enable them to exercise their functions. We have tabled amendments to the schedule to add the Pensions Ombudsman, as well as certain authorities in the devolved nations. The clause also allows for schedule 5 to be amended by affirmative regulations. That provides the flexibility necessary for the fair work agency to respond to changes in the wider labour market and regulatory landscape. Effective information sharing is crucial for successful enforcement of employment rights across agencies. Without the clause, the fair work agency would be unable to receive and share vital information, undermining its ability to effectively enforce those rights. Clause 99 ensures that the information sharing authorised in clause 98 is efficient and reflective of best practice. Although it is vital that the fair work agency can share information with other bodies, it is critical that personal information is protected. Information will be able to be shared under clause 98 without breaching any obligation of confidence, or other restriction on the disclosure of information. Clause 99 ensures that information shared under clause 98 is shared in accordance with the relevant data protection laws and remains subject to relevant prohibitions on disclosure in the Investigatory Powers Act 2016. It is crucial to safeguard the ongoing secure handling of information and to ensure that all parties can be confident that that information will be managed in the proper way.

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

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  It is pleasing to hear generally broad support for this measure. As my hon. Friend the Member for Birmingham Northfield pointed out, and as the hon. Member for West Suffolk will know better than most, this was previously a Conservative party manifesto commitment, and we are pleased to be able to move it forward. Some detailed operational questions were asked. At this stage, how the agency will work in practice is still being fleshed out. The current understanding in the impact assessment is that this is about the consolidation of existing resources and having a single point of leadership. Members will recall that, in her evidence to the Committee, Margaret Beels, the Director of Labour Market Enforcement, talked about how her role would be much easier if she were able to combine the powers of different agencies. The shadow Minister asked whether we will require extra staff. That will be part of discussions with the Treasury. As he will know, there is a spending review on the horizon and Departments have been asked to look at savings. Clearly, we hope that the combining of resources will lead to some efficiencies, but there is certainly a view from a number of stakeholders that enforcement is not at the level it ought to be—

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

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  I beg to move amendment 84, in clause 72, page 79, line 15, at end insert— “(4A) Accordingly, in the case of the exercise by an enforcement officer of an enforcement function of the Secretary of State, any reference in an enactment to the Secretary of State in connection with that function is to be read as, or as including, a reference to that officer or any other enforcement officer.” This amendment ensures that, where an enforcement officer is exercising an enforcement function of the Secretary of State by virtue of clause 72(4), references in legislation to the Secretary of State in connection with that function will include references to enforcement officers, so that the legislation will apply in relation to the enforcement officer as it would apply to the Secretary of State if the Secretary of State were exercising the function. It is a pleasure to see you in the Chair this morning, Mr Mundell. I start by making the customary reference to my declaration in the Register of Members’ Financial Interests. Clause 72 is the first in relation to the fair work agency, and it is one of the building blocks of the agency. I will explain the main elements of the clause, as that will help us to understand the amendment. The clause confers an overarching function on the Secretary of State to enforce certain legislation set out in part 1 of schedule 4, which the clause introduces. The clause provides flexibility for the Secretary of State in how to deliver that overarching enforcement function. It enables them to appoint enforcement officers to carry out the function on their behalf, and it provides that enforcement officers will be able to exercise any of the enforcement functions of the Secretary of State and will have the enforcement powers conferred on them as set out in the terms of their appointment by the Secretary of State. As I said, the Secretary of State has the function of enforcing the legislation set out in part 1 of schedule 4. The legislation contains references to the Secretary of State having functions and powers in connection with the enforcement of the rights set out in that legislation. It is important that those references can be read as references to the enforcement officers the Secretary of State appoints to act on their behalf; otherwise, enforcement officers may not be able to properly exercise the enforcement functions of the Secretary of State. That would make their appointment, and potentially their enforcement activity, less effective. Government amendment 84 inserts a new subsection after clause 72(4) to ensure that references to the Secretary of State are read as references to enforcement officers where necessary. The practical effect is that the legislation will apply to enforcement officers as it would to the Secretary of State. This is a technical change, but I hope that Members will see that it is necessary.

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

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  What we are doing is transferring existing powers and responsibilities from the existing agency. There are no new police-style powers being created for these officers; it is simply a transfer over to the fair work agency. Clause 72 is key to delivering the much-needed upgrade to the enforcement of workers’ rights so that it is more effective and fair for workers and businesses. It brings together enforcement functions currently split between several different enforcement agencies and gives the fair work agency the flexibility to respond to a rapidly changing labour market. I commend the clause to the Committee.

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

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  The working time regulations have had a relatively long history in our legal framework. They provide vital rights: a maximum working week of 48 hours, rest breaks of 20 minutes every six hours, rest periods of 11 hours each day and at least 24 hours each week, and 28 days of annual leave each year. The regulations implement the EU working time directive; the then Government deliberately designed them to provide maximum flexibility for both employers and workers. For example, workers can choose to opt out in writing from the 48-hour week maximum. We believe that the regulations have benefited millions of workers and their families over the years. They afford workers a better balance between work and other responsibilities, as well as improvements in health and wellbeing. A 2014 review by the previous Government of the impact of the working time regulations on the UK labour market found that since 1998 there had been a decline in long-hours working in the UK and a general trend towards shorter working hours, which is probably not a surprise. The findings also suggested that the impact of the regulations was mainly through increased employment of workers doing shorter working weeks, rather than through a reduction in total hours worked. Annual leave entitlements have increased since the introduction of the working time regulations; many workers now enjoy a more generous leave entitlement than is prescribed by law. Limitations on working hours and entitlement to a minimum number of days’ holiday can contribute to improvements in health and safety. Most employers accept that a minimum holiday entitlement contributes to physical and psychological wellbeing. Reductions in stress and fatigue caused by excess hours can provide many benefits, including less pressure on health services and better performance at work, with fewer accidents. By establishing minimum standards, the working time regulations also support a level playing field that discourages competition that relies on poor working conditions and a race to the bottom. New clause 20 would revoke the Merchant Shipping (Maritime Labour Convention) (Hours of Work) Regulations 2018, which provide for adequate rest for seafarers and support the management of onboard fatigue and the wellbeing of seafarers. Revoking the regulations would negatively affect the ability of the Maritime and Coastguard Agency to enforce safe and healthy working conditions for seafarers. The new clause would also revoke the Fishing Vessels (Working Time: Sea-fishermen) Regulations 2004, which require the UK to implement the International Labour Organisation’s work in fishing convention, which underpins the safe operation of vessels. Fishing is one of the most dangerous sectors in the UK, with 50 injuries per 100,000 workers compared with a UK average of 0.4. We believe that the 2004 regulations are critical to ensuring that workers take the appropriate hours of rest to prevent fatigue-related incidents. The new clause would also revoke the Merchant Shipping (Working Time: Inland Waterways) Regulations 2003. The Maritime and Coastguard Agency is in the process of conducting a post-implementation review of those regulations. The initial responses to the consultation have indicated a generally positive view from stakeholders. The new clause would also revoke the Cross-border Railway Services (Working Time) Regulations 2008, which provide enhanced rights and worker protections for those engaged in cross-border rail services, such as train crew for Eurostar services through the channel tunnel. The revocation of the regulations would erode those enhanced protections. The Government believe that the minimum standards in the Working Time Regulations 1998 and other sector-specific working time regulations have supported millions of workers and their families by enabling them to better balance work and other responsibilities. The Government have no plans to revoke the working time regulations or any of the other sector-specific regulations. I understand what the shadow Minister says about whether we consider the regulations to be beneficial to businesses, but he will know that there was ample time under his Government to undertake those reviews. Indeed, one was undertaken just over a decade ago, as I said. We have no plans to erode workers’ rights in this area; indeed, one of the fair work agency’s main functions will be to enforce rights to holiday pay, which evidence to the Committee suggests are not being enforced properly. The shadow Minister says that he has no intention of revoking the working time regulations and that his amendment is probing, but I can only speak to what is before the Committee. If he had tabled an amendment seeking a review of the operation of the working time regulations, that might have been more appropriate in the circumstances. This feels to me like a dog-whistle amendment, so I am pleased to hear that he will not be pressing it.

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

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  I beg to move amendment 169, in schedule 4, page 127, line 29, leave out paragraph 3 and insert— “3 Section 151(1) of the Social Security Contributions and Benefits Act 1992 (employer’s liability to pay statutory sick pay). 3A Regulations under section 153(5)(b) of that Act (requirement to provide statement about entitlement).” This amendment clarifies the specific obligations relating to the payment of statutory sick pay which will be enforceable under Part 5 of the Bill.

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

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  I know you have been eagerly awaiting this clause, Mr Mundell. It concerns an important part of the fair work agency, and something that the Liberal Democrat spokesperson touched on earlier. The agency has a big job on its hands to restore trust among workers that they will get the rights that they are entitled to and that Parliament has laid down. It also important that the agency is trusted by businesses, and that they know they will be treated fairly and that if they follow the law, they will not be undercut by those who seek to avoid it. That is an important job for the fair work agency and it is important that we get it right. It must reflect the concerns of businesses and workers. The Low Pay Commission has served the country well since the last Labour Government created it to advise on the national minimum wage. That is because it is a social partnership, comprising equal voices of workers, businesses and independent experts, and can reflect the perspectives of all those bodies when making recommendations. We want the FWA to replicate that success. The clause requires the Secretary of State to create an advisory board for the fair work agency. Subsection (2) specifies that the board must consist of at least nine members appointed by the Secretary of State. Subsection (3) provides that board members must hold and vacate their position in accordance with the terms and conditions of their appointment. Subsection (4) provides for the advisory board to have a social partnership model, requiring equal representation of businesses, trade unions and independent experts. We know this is a complex area that is constantly changing, but we believe that the model and approach that has proved so successful with the Low Pay Commission should be replicated here. I therefore commend the clause to the Committee.

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

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  As we have discussed, the current enforcement system for workers’ rights is fragmented. By creating the fair work agency, we intend to bring enforcement into one place. We have been clear that we also want the fair work agency to enforce individual rights to statutory sick pay, because we want to upgrade the enforcement of workers’ rights and stand up for the most vulnerable in our workforce, including those who are unable to work owing to sickness. That is why part 1 of schedule 4 to the Bill, as introduced on 10 October 2024, includes part 11 of the Social Security Contributions and Benefits Act 1992—one of the main pieces of legislation setting out the statutory sick pay regime—in the body of relevant labour market legislation. Government amendment 169 further clarifies the obligations concerning the payment of statutory sick pay under the Act and regulations made under it, which will be enforceable under part 5 of the Bill. However, there is a wider body of statutory sick pay legislation containing details about the entitlements bestowed on workers and the duties of employers. After further work, we noted that some of those provisions needed to be included under the fair work agency. That led us to amendment 170, which will add the following legislation to part 1 of schedule 4: regulations made under section 5 of the Social Security Administration Act 1992, in so far as they relate to statutory sick pay, which deal with claims for, and payment of, benefits; section 14(3) of the Act, which establishes the duty on employers to provide employees with certain information about their sick pay entitlement; and regulations made under section 130 of the Act, in so far as they relate to statutory sick pay. Those provisions will be considered relevant labour market legislation, which makes them part of the Secretary State’s enforcement function. We will proceed with them once the fair work agency is ready to enforce them effectively. Amendments 169 and 170 are therefore necessary for the fair work agency to deliver its remit on statutory sick pay.