Part of Employment Rights Bill - Report (3rd Day) – in the House of Lords at 5:00 pm on 21 July 2025.
Lord Pitkeathley of Camden Town
Labour
5:00,
21 July 2025
My Lords, I am aware that many of the amendments in this group have a rather different focus from the points I wish to make. I acknowledge the amendments by the noble Lords, Lord Clement Jones and Lord Holmes of Richmond. I believe they provide a valuable opportunity to reflect on the particular nature of working in tech and AI. This is, as has already been alluded to, a sector that makes a significant and growing contribution to the UK economy, and it is rightly seen as one of the priority strands of the Government’s modern industrial strategy.
As the rather scary AI 2027 forecast by Daniel Kokotajlo and others makes clear, developments in this space are accelerating incredibly rapidly and are already reshaping how we live and work. Even as I say that, I wonder whether I may have triggered an algorithmic alert somewhere—let us hope that parliamentary privilege covers some of it. AI is happening, regardless of how we feel about it, and the opportunity it provides makes it all the more important that firms are based and regulated here rather than elsewhere.
Jobs in this area tend to be highly skilled and well paid, but that does not mean workers do not need some protections. In many cases, the things that matter most are not issues such as minimum wage and paid leave but how easily people can move between companies, start their own ventures and work across several fast-growing enterprises. Here, it is non-compete agreements which pose a particular challenge. Understandable concerns over safeguarding intellectual property have led some firms to restrict employee movement, yet this comes at a cost to innovation, competition and the free flow of ideas that underpin these industries. I know the last Government carried out a review of these clauses in general terms, but no meaningful reform followed. Does the department have a view on how widespread these clauses now are, particularly in fast-moving and competitive sectors? Has any formal assessment been made of their impact on innovation, start-up activity, and people’s ability to move freely and fairly between roles?
I fully appreciate that this Bill is focused on establishing baseline rights for all workers rather than addressing sector-specific concerns. However, I hope the Minister can say something about how these challenges are being considered as part of the Government’s wider thinking on the future of work and on how we ensure that the UK remains a good place to innovate, as well as a fair place to work.
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