To ask His Majesty’s Government what assessment they have made of the frequency of the use of ‘fire and rehire’ practices by employers as (1) a negotiating tactic, (2) a cost-cutting measure to increase profits, and (3) a cost-cutting measure to prevent insolvency.
My Lords, the Government have been clear that threats of dismissal and re-engagement should not be used as a negotiation tactic. We have asked the Advisory, Conciliation and Arbitration Service to conduct an evidence-gathering exercise to learn more about the use of dismissal and re- engagement practices, and its report is available on its website. The Government are now going further; we will bring forward a statutory code of practice and publish a draft for consultation in due course.
I thank the noble Lord for his update. Members across this House share my belief that fire and rehire is immoral, but this obnoxious behaviour is still happening today. We know that and the Minister knows that. It is disappointing that, in spite of the kind words and efforts that have just been spoken about, the Government are not doing enough to eradicate this practice even though opinion polls show that 70% of Tory voters believe that this should be banned. Can the Minister therefore confirm that the new Government will be supporting my Private Member’s Bill? I emphasise that it protects companies which are at risk of going under and at the same time protects workers from the exploitation of opportunistic employers?
I am sure the noble Lord will not be surprised to know that we will not be supporting his Private Member’s Bill. Let me say that dismissal and re-engagement should only be considered as an absolute last resort if changes to employment contracts are critical and voluntary agreement is not possible. We do not want to encourage the practice but do not think that banning it would be right because, in some limited circumstances, it is the only way to save businesses and protect the jobs within them.
My Lords, will the Minister give us an assurance that any firm using this practice inappropriately will lose any government contracts? That would be a very clear indicator that the Government disapprove.
We do disapprove of these practices, which is why, as I said to the noble Lord, Lord Woodley, we are producing a statutory code and will consult on it shortly.
The noble Lord will have to await the details in the code of practice. One option will be to allow employment tribunals to take into account if the statutory code has not been followed and award uplifts in compensation as a result.
My Lords, many across this House joined together to condemn P&O Ferries for its appalling behaviour towards its employees. Does the Minister agree that, in the long run, it seems to have got away with it and that this indicates the weakness of employment law?
As the noble Lord will be aware, the Government are bringing forward legislation to stop those kinds of practices and extend minimum wage provisions to seafarers. The DfT is progressing that.
My Lords, when will the long-promised employment Bill be presented to the House? On previous occasions the Minister has said “when parliamentary time allows”. We notice that parliamentary time has allowed legislation to further restrict the right to strike and proposals to create a bonfire of workers’ rights derived from EU directives. Could the Minister not find a little bit of time for the employment Bill promised in 2019?
The noble Lord has answered his own question. The position remains that we will bring forward an employment rights Bill when parliamentary time allows. I point out that the Government are supporting numerous Private Member’s Bills which have been introduced, particularly in the other place, such as the Neonatal Care (Leave and Pay) Bill, Employment (Allocation of Tips) Bill, Protection from Redundancy (Pregnancy and Family Leave) Bill and the Carer’s Leave Bill. Many of these provisions are being taken forward.
My Lords, everyone deserves to be treated with dignity and respect at work, even government Ministers. Being rehired on worse terms and conditions is just plain wrong. It has been over seven months since the Government announced the new statutory code on fire and rehire, which I think the TUC called baby steps that would not deal with rogue employers. Can I push the Minster a little more? He said, “in due course”, but can he give any more detail on the timescale for the start of the consultation? Regarding the last question from the noble Lord, Lord Fox, I do not think P&O carried out fire and rehire, but just fired staff.