My Lords, the Government asked ACAS to investigate fire and rehire, and it published guidance in November. The Government have announced their intention to publish a statutory code on fire and rehire in March, and the draft is due to be published for consultation this summer. The code will set out good practice, helping parties to reach a negotiated agreement. In cases of dispute, the code will be admissible in relevant legal proceedings and may result in increased compensation.
My Lords, I welcome the Minister’s response. Codes and consultations are helpful but, with respect, they do not go far enough. Ministers, including the Prime Minister, are paying lip service to condemning fire and rehire as an unacceptable practice. However, talk is cheap; we need legislation to stop the many abuses by numerous big-name companies and others. Today I will introduce a Bill banning fire and rehire, except in the most extreme circumstances—the same Bill that the Government so cynically squashed in another place. Therefore, my question to the Minister is simple: will he do the right thing and back my Bill —yes or no?
My Lords, we always do the right thing. I realise that it is an easy soundbite for the noble Lord to say “ban fire and rehire”, but even he would accept that you cannot ban redundancies, for instance if a company is going bust. You would end up banning the rehiring part of the equation.
My Lords, legislation is useful, and I hope the Minister pursues that course, but in the meantime will the Government look very carefully at giving any new contracts to a firm which engages in such atrocious behaviour?
We want to see all companies engaging in responsible employment practice. The UK has an employment record to be proud of. We have one of the lowest unemployment rates in the western world, one of our lowest post-war records—down again yesterday. If you contrast that to many countries in the EU or on the continent, with much less flexible labour markets, the best employment right of all is a job.
My Lords, the noble Lord, Lord Jones of Cheltenham, is making a virtual contribution.
Lord Jones of Cheltenham (LD) [V]
My Lords, I draw attention to my registered interests. Sometimes employment contracts need updating to reflect new legislation. Under current law, if agreement cannot be reached between employer and employee, notice can be given and new contracts offered. Then employees can opt for a tribunal claiming unfair dismissal, but tribunals are taking up to 18 months to determine. What are the Government doing to speed up tribunals?
There has been a delay from the pandemic, as in many parts of the public service, but we are doing all we can to make sure that cases are expedited as quickly as possible.
We have said that we will deliver when parliamentary time allows, but there are many other ways of delivering what were manifesto commitments than a formal government employment Bill.
My noble friend has pointed out that unemployment levels are at an all-time low, but is he not worried about the rising number of those who are not seeking work?
That will depend on the individual circumstances of many people. The pandemic resulted in a number of people reassessing their life choices and if they have decided not to go back into the labour market, I am not sure that is something we can implicitly control. But as I said, we have 600,000 more people in work than before the pandemic and one of the lowest unemployment rates in the western world.
My Lords, the Government were right in their condemnation of the disreputable behaviour of P&O Ferries recently, but I also read a lot in the papers about the Government considering introducing a Bill which will make it lawful to replace striking workers with agency workers. I am puzzled about what the difference is between what P&O has done and the kind of thoughts that are obviously alive in Government at present. What is the difference?
The difference is very clear. What P&O did is potentially illegal. Investigations into both criminal and civil wrongdoings are ongoing, so I cannot comment on those particular investigations, but if trade unions are considering holding the travelling public to ransom, as many of them are, then it is right that we should look at all available options, and we will do so.