UK Parliament / Open data

Small Business, Enterprise and Employment Bill

Various issues affect the tax take and employment, not least the amounts that people are earning, For instance, if people are working for fewer hours, they will pay less income tax, because there will be more people within the tax threshold. That said, we are proud of the fact that we have raised the threshold. I campaigned hard for that in the last Parliament, and I am delighted that we have delivered it.

The hon. Gentleman accused me of saying that there was no problem with zero-hours contracts. Of course we accept that there is a problem with them. That is why we have produced legislative proposals, which, despite the promises of the former Labour party leader Tony Blair, his party did not manage to do when it was in government.

Amendment 9 is intended to ensure that zero-hours contract workers have a route to redress to enforce the rights in clause 145. I recognise the serious point that the hon. Gentleman is making, but, as I reassured him in Committee, that is already possible through the order-making power in new section 27B. His amendment is therefore unnecessary.

2.30 pm

We have consulted on the issues of avoidance and routes of redress. Obviously, we do not want a situation where rogue employers could try to get around their

obligations under the Bill. For the benefit of the House—obviously, not all Members were able to attend the discussion in Committee—that consultation closed on 3 November and the Government are considering the responses to it. More than 70 responses were received. We will then of course publish our response. I reiterate my assurances that, if regulations are required, we will act and we have the power in the Bill to do so under new section 27B.

Amendment 10 would allow for individuals on zero-hours contracts to be awarded compensation, in as yet undefined circumstances. Again, the order-making power in new section 27B already allows for that. The amendment also seeks to force employers to offer fixed-hours contracts once an individual has worked regular hours for a continuous period, or series of continuous periods. We discussed a similar amendment in Committee. The issue is whether imposing restrictive criteria such as those could discourage some employers from creating jobs. There could certainly be some unintended consequences: at the end of a qualifying period, some people could be let go, or not offered any hours, to try to avoid having to convert a contract to a fixed-hours contract.

That said, I recognise that amendment 10 is driven by some genuine issues. We recognise that zero-hours contracts have a role in the labour market, but they must be used responsibly. That is why we are committed to working with industry to provide, sector by sector, specific guidance to ensure that employers can have confidence that they are using zero-hours contracts responsibly and that the basic standards and best practice are clear to everyone—employers and employees alike.

I hope, with those reassurances, that the hon. Member for Edinburgh South (Ian Murray) will withdraw his amendment and that the House will be happy to support Government amendments 61 to 64.

Type
Proceeding contribution
Reference
588 cc306-7 
Session
2014-15
Chamber / Committee
House of Commons chamber
Subjects
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