Baroness Lloyd of Effra:

Moved by Baroness Lloyd of Effra

That this House do not insist on its Amendment 1B to which the Commons have disagreed for their Reason 1C.

1C: Because it would weaken workers’ rights to guaranteed hours.

My Lords, in moving Motion A, I will speak also to Motions C and C1. In this group, we will be debating the amendments relating to zero-hours contracts and seasonal work.

Amendment 1B, tabled by the noble Lord, Lord Fox, would require employers to write to workers at the end of each reference period, explaining their right to receive the guaranteed-hours offer and giving them the option to accept or decline. I take this opportunity once again to thank the noble Lord for his contribution throughout the Bill. We agree on many of the fundamentals relating to the security of work, and we have commonality in wanting to protect workers from precarious employment.

I recognise that the intent and sentiment behind the amendment is to ensure a balanced and practical approach, and I share the noble Lord’s desire for the Bill to work for businesses and workers alike. I look forward to further conversations with him on this matter and beyond, when we will continue our programme of consultation to ensure that the Bill’s measures are delivered effectively and proportionately for business.

However, the amendment as drafted would alter fundamental aspects of the Bill. We are building an economy based on fair competition between businesses, greater productivity in the workplace, job security for workers and a fair reward for hard work. We need to tackle exploitative zero-hours contracts that leave some staff unable to plan their working lives or manage their family finances, and the provisions in the Bill do that. We appreciate that some groups value the flexibility that zero-hour contracts can provide. Those workers will be able to decline a guaranteed-hours offer and remain on their existing arrangements if that works best for them. I hope noble Lords agree that ending exploitative zero-hours contracts and providing security for the workers who need it most is imperative.

Motion C relates to Amendment 48B, tabled by the noble Lord, Lord Sharpe of Epsom. The Government are fully aware that work in certain sectors fluctuates throughout the year, and we recognise the importance of those sectors. That is why consideration of seasonal work is built into the right to guaranteed-hours provisions. There are several ways in which an employer could approach seasonal demand. One approach would be to use annualised-hours contracts, which allow employers to vary the number of hours worked at different times of the year. Some businesses already use these contracts, ensuring that they can account for fluctuating demands in work when planning, while enabling workers to plan for household budgeting. Additionally, the Bill already allows guaranteed-hours offers to take the form of limited-term contracts where reasonable. The Bill also provides powers to address seasonal work through regulations, ensuring flexibility as needs evolve.

We will consult with employers, trade unions and stakeholders before making regulations. It is paramount that stakeholders are engaged with before we make these necessary decisions. Through the introduction of the new right to guaranteed hours, work will become more secure and predictable. It will leave workers in some of the most deprived areas less exposed to the hidden costs of insecure work, which can add up to as much as £50 a month for some, while strengthening the foundations that underpin a modern economy. I beg to move.

The Minister’s enthusiasm got the better of her but I had not actually put the Question that the amendments and reasons be now considered. I hope the House will take it that we did so do, even though we did not say it.