Fair Work Agency’s priorities criticised days before its launch | Regulators
It has been revealed that the government wants its new employment rights watchdog to reduce the regulatory burden on businesses; Labor advocates said the request risked turning the agency into a “dead duck.”
The Fair Work Agency (FWA), which launched on Tuesday, is the cornerstone of Labour’s Employment Rights Bill. It will bring together the various existing labor enforcement bodies and its responsibilities will include monitoring the minimum wage, holiday pay and modern slavery.
At a recent meeting with civil society groups, new chairman Matthew Taylor outlined five priorities the Department of Business and Trade had set for FWA in its first year. These included “thought leadership” and “reducing regulatory burdens.”
But experts and unions say instead of reducing regulations, a more robust approach and more funding for inspections is needed.
Sharon Graham, general secretary of Unite, which represents more than 1 million workers, said the priorities showed the force was “in danger of becoming a dead duck before it even gets started”.
“For too long, workers have borne the brunt of disreputable employers with carte blanche,” he said. “The government urgently needs to ensure that the FWA focuses its attention on reining in rogue bosses rather than looking for ways to allow dangerous companies to continue their bad behaviour.”
Caroline Robinson, director of the Workers Support Centre, a charity supporting migrant workers, said the recommendations were “deeply worrying”.
“Introducing a new regulator to reduce regulatory burdens is paradoxical. Labor enforcement has been greatly reduced by successive government cuts over the last 20 years,” he said. “The Fair Work Agency is our opportunity to turn this around.”
The United Kingdom has the fewest labor inspectors per worker among the Organization for Economic Co-operation and Development countries. Different estimates put the size of the unpaid wages in the billions of pounds.
Prof David Whyte, of Queen Mary University, said this meant employers “face no credible threat of audit, investigation or sanction”.
On Monday, Whyte will release a report with the Employment Rights Institute with recommendations including adequate funding for the FWA, unannounced inspections and investigations for misconduct. The government has not yet announced the budget it will allocate to FWA.
“It’s incredibly demoralizing,” said Nick Clark, who previously sat on the board of the government’s agricultural exploitation watchdog, then called the Gangmasters Licensing Authority.
He said it was striking that none of the government’s priorities, which include “intelligence and data” and “public awareness and stakeholder engagement”, mention improving conditions for workers.
As part of the legislation, an advisory board representing business, unions and independent experts was created to inform FWA’s work. They have not yet met and have not been consulted on the government’s priorities. It appears that Tuesday’s launch will be followed by a more significant launch in October. The agency’s first full strategy 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,” one board member said. “Let’s give them the benefit of the doubt.”
A government spokesman said: “The new Fair Work Agency will end the current fragmented system of enforcing employment rights, making it easier for workers and victims of exploitation to get the rights they deserve.
“While the agency supports employers who want to do the right thing and strengthen workers’ rights, it will take tough action against businesses that deliberately disregard the law.”
