Contribution
I draw attention to my entry in the Register of Members’ Financial Interests, which includes an election donation from the Union of Shop, Distributive and Allied Workers and my membership of the Unite and GMB unions.
I welcome the Bill’s return to the House and the opportunity to consider the amendments made in the other place. I also welcome the new Secretary of State to his place and thank him for his kind words. I also welcome the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), to her ministerial position—undoubtedly the best job in Government—and wish her every success in that role. I know that she will be a champion for workers and that she will be committed to introducing the “make work pay” agenda in full, as we promised in our manifesto.
I am speaking a few rows back from where I had expected to be today. The shadow Secretary of State mentioned getting a short-notice cancellation payment—I am afraid that has not winged its way to me yet. However, I am delighted to be speaking in any capacity, because this Bill really is what a Labour Government should be delivering on. I was able, alongside my right hon. Friends the Members for Ashton-under-Lyne (Angela Rayner) and for Stalybridge and Hyde (Jonathan Reynolds), to take the new deal for working people—a policy programme carefully developed in opposition—and turn it into legislation that was laid before the House within 100 days of taking office, as we promised we would. While I started my ministerial role as I ended it—fired with enthusiasm—my hopes for the meaningful change that the Bill can deliver remain undimmed.
That we are here entering the Bill’s final stages is testament to the hard work and dedication of those who developed the policy programme both in opposition and in government. I place on record my thanks to those in the Department for Business and Trade who helped shape those manifesto commitments into the Bill. I also pay tribute to Baroness Jones of Whitchurch, who did a sterling job of guiding the legislation through the other place amid intense scrutiny and opposition, which of course we will talk about.
I will not go through every Lords amendment; I will just pick out a few of those I consider to be most damaging and undermining of the intentions that we set out in our manifesto about how we will rebalance the workplace to make it work for ordinary people. First, Lords amendment 1 completely undermines the principle, set out in our manifesto, of banning exploitative zero-hours contracts. The amendment would water down the commitment we gave to provide workers with an offer of a guaranteed-hours contract to a right to request guaranteed hours.
There has long been a misunderstanding—perhaps a wilful misunderstanding—of how the policy operates. It does not prevent those who want to remain on zero-hours contracts from continuing to do so, and neither does it prevent employers from hiring seasonal workers. It simply provides the opportunity for those who want certainty about the hours they work, week to week and month to month, to have guaranteed hours. We understand that not everyone will take advantage of that, but it might just be a lifeline for those who struggle to balance fixed costs such as bills, housing and childcare by taking out the stress of the potential variations that we see so often in zero-hours contracts at the moment. This is a very good thing for the Government to be doing, because one of the key principles in the Bill is the need to restore security and dignity at work, which would be damaged by the amendment.
I understand that the noble Lords argued that the wording of the amendment would prevent employers from rejecting guaranteed-hours requests. It is presented as a reasonable compromise that achieves the same outcome, maintaining workers’ rights to guaranteed hours while removing the employer’s requirement to make offers. I disagree with that analysis. It shifts the right from one that is passively applied to one that has to be actively invoked by workers. This means that an individual would have to know their rights and have the confidence to approach their employer in order to benefit from them.
As the Secretary of State said, those working on zero-hours contracts are some of the least empowered workers in this country, their contracts are inherently precarious, and those working on them are more likely to be younger, working part time and in low-paid sectors. There are plenty of examples out there of how the allocation of hours has been used by management as a tool of control and, in some cases, a tool of abuse. The Bill already sets out a number of anti-avoidance measures, because we know that that massive power imbalance has to be addressed, and this amendment would fatally undermine all that good work.
I have similar concerns about Lords amendments 6 and 7, which seek to impose 48 hours as a reasonable notice period. If passed, these amendments would remove any chance for workers or employers to make representations in a consultation process, and instead force an arbitrary cut-off of 48 hours. Throughout my time as a Minister, we were committed to consulting widely on changes and incorporating the feedback we received into our approach. I remember the Conservatives complaining during the original passage of the Bill that we were not consulting enough, yet now they lend their support to amendments that would chop that consultation off entirely.
That said, I must welcome the comments from Opposition Front Benchers in the other place, who indicated that they supported the principle of compensation for cancelled or curtailed shifts. I note that Lord Hunt of Wirral said:
“We are fully in agreement that workers deserve reasonable notice of shifts. That is a fair and modern expectation.”—[Official Report, House of Lords, 14 July 2025; Vol. 847, c. 1612.]
Quite how that fits with the Tory pledge to scrap the entire Bill, I do not know. Of course, it is to be expected, as night follows day, that they will object to measures that improve the rights of working people, but that would mean scrapping things that I thought even they supported, including ending non-disclosure agreements for victims of sexual harassment, a new right for bereavement leave for those who have suffered a pregnancy loss, and finally an end to fire and rehire, which they did so much to condemn while in government but did nothing of substance to deal with. That is the Conservative position on this, and it is something that the British people will completely and wholeheartedly reject.
Lords amendment 23 relates to unfair dismissal, which is something I know rather a lot about. It seeks to impose a six-month qualifying period for unfair dismissal rights rather than day one rights, which everyone on the Labour Benches has campaigned for. This is another brazen attempt by the other place to remove a clear manifesto commitment. I and other Labour Members were elected on a mandate to introduce basic rights, including unfair dismissal rights, from day one. How can we allow people who essentially have a job for life to prevent millions of people in this country from getting basic employment protections on day one? It is fundamentally wrong that workers can currently be treated so disposably, and that they can be dismissed arbitrarily with no legal recourse for two years. This is about fairness. A worker deserves to be treated with dignity, fairness and respect, no matter how long they have worked for an employer.