The Government has asked its new employment rights watchdog to reduce the regulatory burden on business, it has emerged, a request that worker advocates said risks turning the agency into “a dead duck”.
The Fair Work Agency (FWA), which is being launched on Tuesday, is the cornerstone of Labour’s Employment Rights Act. It would bring together several existing labor enforcement bodies and its responsibilities would include the minimum wage, holiday pay and control over modern slavery.
At a recent meeting with civil society groups, its incoming chair Matthew Taylor listed five priorities that the Department of Business and Trade has set for the FWA in its first year. These included “thought leadership” and “reducing regulatory burden”.
But experts and trade unions say rather than reducing regulation, a more robust approach and more money for oversight are needed.
Sharon Graham, general secretary of Unite, which represents more than 1 million workers, said the priorities showed the agency was “in danger of becoming a dead duck before it even gets started”.
“For too long, workers have had to bear the brunt of disreputable employers who have carte blanche,” he said. “The Government urgently needs to ensure that the FWA focuses its attention on punishing rogue owners rather than looking for ways to allow rogue companies to continue bad behaviour.”
Caroline Robinson, director of the Worker Support Centre, a charity supporting migrant workers, said the recommendations were “deeply concerning”.
“Introducing a new regulator with the aim of reducing regulatory burden is contradictory. Labor enforcement has been decimated by persistent government cuts over the past 20 years,” he said. “The Fair Work Agency is our opportunity to reverse this.”
The UK has the lowest number of labor inspectors per worker among Organization for Economic Co-operation and Development countries, with unpaid wages running into the billions of pounds according to different estimates.
This means employers face “no credible threat of inspection, investigation or enforcement,” said Queen Mary University professor David Whyte.
White will publish a report on Monday with the Institute of Employment Rights with recommendations for the FWA, including adequate funding, unannounced inspections and prosecutions for wrongdoing. The government has not yet announced the budget it will allocate to FWA.
“It’s extremely disappointing,” said Nick Clarke, who previously sat on the board of the government’s agricultural exploitation watchdog, then renamed the Gangmasters Licensing Authority.
He said it was noteworthy that none of the government’s priorities, which also included “intelligence and data” and “public awareness and stakeholder engagement”, mentioned improving conditions for workers.
As part of the legislation, an advisory board representing business, unions and independent experts has been established to inform the work of the FWA. They have not met yet and have not been consulted on the government’s priorities. It is understood that Tuesday’s launch will be followed by a more significant launch in October. The first full strategy for the agency will be published in April 2027.
“The message I’ve heard so far is that they’re still working on the basics, that they really want to be consultative and collaborative,” said one board member. “Let’s give them the benefit of the doubt.”
A government spokesperson said: “The new Fair Work Agency will end the current broken system of enforcing employment rights, making it easier for workers and victims of exploitation to get the rights they deserve.
“The agency will take strong action against businesses that knowingly violate the law, while supporting employers who want to do the right thing and strengthen workers’ rights.”
