The government has tasked its newly established employment rights regulator with the goal of easing the regulatory load on businesses. This request has raised concerns among advocates for workers, who warn that it could undermine the effectiveness of the agency, dubbing it “a dead duck.”
The Fair Work Agency (FWA), set to officially launch on Tuesday, is a key component of the Labour Party’s Employment Rights Act. This new entity will consolidate various existing labour enforcement organizations and will be responsible for overseeing compliance with minimum wage laws, holiday entitlements, and issues related to modern slavery.
During a recent gathering with representatives from civil society, Matthew Taylor, the FWA’s incoming chair, outlined five key objectives that the Department of Business and Trade expects the agency to focus on in its inaugural year, which include “thought leadership” and “reducing regulatory burdens.”
However, numerous experts and trade unions argue that instead of lessening regulations, a more vigorous approach, along with increased funding for inspections, is essential.
Sharon Graham, general secretary of Unite, which represents over one million workers, expressed concern that the agency may falter before it even launches. She stated, “For too long, workers have suffered at the hands of unscrupulous employers who have operated without restrictions. The government must ensure that the FWA prioritizes holding rogue employers accountable rather than finding ways to enable problematic companies to persist in their misconduct.”
Caroline Robinson, director of the Worker Support Centre, a charity aiding migrant workers, described the government’s recommendations as “deeply concerning.” She noted, “It is contradictory to establish a new regulatory body aimed at easing regulatory pressures. The enforcement of labour laws has significantly deteriorated over the past two decades due to consistent government budget cuts. The Fair Work Agency represents an opportunity to change this trend.”
Within the Organisation for Economic Co-operation and Development, the UK has one of the lowest ratios of labour inspectors to workers, with estimates indicating that unpaid wages could amount to billions of pounds. This situation results in employers facing “no credible threat of inspection, investigation, or enforcement,” according to Professor David Whyte from Queen Mary University.
Prof. Whyte is set to release a report with the Institute of Employment Rights that will propose recommendations for the FWA, including sufficient funding, surprise inspections, and legal action against violations. The government has not yet disclosed the budget for the FWA.
Nick Clark, a former board member of the government’s agricultural exploitation watchdog, noted his disappointment that none of the government’s stated priorities, which also encompass “intelligence and data” as well as “public awareness and stakeholder engagement,” focus on enhancing worker conditions.
As part of the new legislation, an advisory board comprising representatives from businesses, unions, and independent experts has been established to guide the FWA’s initiatives. However, this board has yet to convene and was not consulted regarding the government’s priorities. Following the launch on Tuesday, a more comprehensive event is expected in October, with the first detailed strategy for the agency scheduled for publication in April 2027.
One board member commented, “So far, the message I’ve received indicates that they are still working on foundational elements and aim to be highly consultative and collaborative. Let’s give them the benefit of the doubt.”
A government spokesperson remarked, “The new Fair Work Agency will eliminate the current fragmented system of enforcing employment rights, streamlining the process for workers and victims of exploitation to access their rightful entitlements. The agency will take decisive action against businesses that intentionally violate the law while also providing support to employers committed to ethical practices and enhancing workers’ rights.”
