Justin Madders

Justin Madders

Labour — Ellesmere Port and Bromborough

Speaking in the House of Commons on 15 December 2025

Debate

Employment Rights Bill

Contribution

I am glad that there are some Conservative Back Benchers here. Last week they were all somewhere else, but now we are hearing some contributions. I was not in the room when the negotiations took place, but I understand that that was the deal. I am afraid that there have been some wilful misunderstandings on the Conservative Benches about what lifting the compensation cap actually means. Compensation for unfair dismissal is calculated by defined heads of loss under the law, so lifting the cap will not change that one bit. If the claims are still necessary, they will be there. It just means that some workers—particularly older workers who might not be able to get another job and who may have substantial pension losses—will benefit, not the fat-cat bosses that have been talked about. It is important that we stress that point. Also, I do not remember the Conservatives’ manifesto in 2010 promising to double the period for qualification on unfair dismissal. Neither do I remember a pledge in either the Tory or the Liberal Democrat manifesto to put a cap on compensation. None the less, the coalition Government pushed both those policies through. Those who claim that the lifting of the cap will see an avalanche of claims ignore the fact that the rationale used for introducing the cap in the first place was to deal with perceptions about levels of compensation people might recover—in other words, legislating on perceptions rather than on facts—and I have to say, we have heard plenty of those perceptions repeated again tonight. The Opposition can complain about a two-year wait for tribunal claims, but I am grateful to the shadow Secretary of State for recognising his party’s culpability in that. It is important that this Government are working with the trade unions, businesses, the judiciary and ACAS to find ways of improving our system, so that we get justice more quickly, instead of just ignoring it as the previous Government did. This Government have shown flexibility and strength to negotiate a change in order to get a deal over the line. Workers in this country should not be made to wait any longer for these important rights. It is worth reminding the House that the road map we agreed earlier this year shows that the following laws should be in place by April 2026: doubling the maximum period of the protective award; day one paternity leave and unpaid parental leave; whistleblowing protections; establishing the Fair Work Agency; day one statutory sick pay and entitlements for the first time for millions of people who have been denied them to date; and simplifying the trade union recognition process. These are not minor or trivial measures. They are substantial changes that will improve the working lives of millions of people. We should be proud that it is a Labour Government who are delivering them, and we should be determined to deliver them by April 2026. Of course, that is just the beginning. Genuine flexible working, ending zero-hours contracts, banning fire and rehire—there is much more in this Bill that really matters to working people. And there is much more beyond the Bill: the reform of TUPE and parental leave and dealing with the epidemic of bogus self-employment are of huge importance. These are the sorts of things that a radical, reforming Labour Government need to tackle, because the world of work is changing. It is changing far faster than we can legislate for, but we can insulate our constituents against the worst excesses and unintended consequences of the tech revolution by putting security and fairness at the heart of every employment relationship, and we need to do that now. If we do not, we will have failed not only to deliver on the promises we made but to stand up for the very people we were elected to represent, so I call on the other place to agree with the will of the democratically elected Chamber and to deliver finally on our promise to make work pay.

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