Speaking for the government Baroness Neville-Rolfe says the "benefits that this bill will bring should apply consistently" across Great Britain.
She says "it would be unworkable to have different employment laws across Great Britain" and that reviews have always recommended that employment law remains a reserved matter.
Reserved matters are those which are decided on at Westminster, rather than in Wales or Scotland.
Baroness Morgan of Ely says the issue being discussed has been the constitutional settlement rather than the substance of the bill. She tells the government that ministers must be aware that they are pushing through a bill that "will" be sent to the Supreme Court if changes are not made.
And so the House adjourns for the night. Peers resume at 2:30pm tomorrow.