Although the Bill was not mentioned in the Queen’s Speech, it appeared in the background notes.  

The Bill will simplify, clarify and build a stronger enforcement regime for key aspects of employment law. 

Based on the outcome of the Gibbons review of workplace dispute resolution, the Bill aims to implement a package of replacement measures following the repeal of statutory dispute resolution procedures, and to encourage early/informal resolution and changes to the employment tribunal system. 

The Bill will clarify and strengthen the enforcement framework for the National Minimum Wage, and strengthen employment agency standards enforcement regime by making offences under the Employment Agencies Act each way offences and clarifying investigative powers.

Trade and investment minister Lord Jones of Birmingham opened second reading debate on the Employment Bill on January 7 in the Lords. He described the Bill as one that makes “important changes to key areas of employment law.”

The Bill, he said, will “save businesses and individuals’ time and money through reform of the workplace dispute resolution framework,” and provide “stronger enforcement of the national minimum wage and employment agency standards.” 

Lord Jones also outlined measures in the Bill to amend trade union law to ensure compliance with the European Convention on Human Rights ruling, following the case of ASLEF v UK. Clause 17, where this is set out, would allow trade unions to expel members on grounds of membership of a political party.

Opposition spokesperson for business, enterprise and regulatory reform Baroness Wilcox expressed disappointment that “the only area of employment law that the government can conceive of simplifying is that of dispute resolution.” 

“All we have here are seven clauses of deregulation,” she added.

She said, “The government’s arguments for increasing the penalty for non-compliance with the national minimum wage hinge on the current lack of a significant punishment for the offending employer.”

On Clause 17, Baroness Wilcox said her party has “severe reservations that this clause is gold-plating”.  “I feel that it can only increase the perception that the government are in hock to the unions to an extraordinary degree,” she concluded.

For the Liberal Democrats, Lord Razzall expressed broad support for the Bill. “Stronger enforcement of the national minimum wage must clearly be supported,” he stated. “We also support the provisions of Clauses 14 to 16 on employment agencies.”

Lord Razzall said his party is against Clause 17, as the “proposition that a golf club and a trade union should be treated in the same way is slightly bizarre, given the special employment rights that have quite rightly been given to trade unions over the centuries, which do not, of course, apply to golf clubs.”

House of Lords

First reading: December 6 2007 [HL 13]

Second reading: January 7 2008

Grand Committee:

• 1st day: February 4 2008
• 2nd day: February 25 2008
• 3rd day: March 13 2008
• 4th day: April 3 2008

Remaining stages: May 19 2008