The government has asked its new labor rights watchdog to ease the regulatory burden on business, it has emerged, a request which labor advocates have called the risks of reforming the agency a “dead duck”.
The Fair Work Agency (FWA), which was launched on Tuesday, is at the heart of the Employment Rights Act. It will bring together several existing labor enforcement agencies and its responsibilities will include policing minimum wage, holiday pay and modern slavery.
In a recent meeting with community groups, Matthew Taylor, its incoming chairman, listed the top five priorities that the Department of Trade and Industry has set for the FWA in its first year. These included “thought leadership” and “reducing regulatory burdens”.
But experts and unions say that, instead of reducing regulation, a more robust approach and more funding is needed for testing.
Sharon Graham, general secretary of Unite, which represents more than 1 million workers, said the priorities showed the agency was “in danger of being a dead duck before it starts”.
He said: “For too long, workers have borne the brunt of disreputable employers who have carte blanche. “The government urgently needs to ensure that the FWA focuses on bringing bad bosses to heel rather than looking for ways to allow bad companies to continue their bad behaviour.”
Caroline Robinson, director of the Workforce Support Centre, a charity which supports migrant workers, said the recommendations were “very relevant”.
“It is contradictory to introduce a new manager with the aim of reducing regulatory burdens. The performance of workers has been reduced in the last 20 years by reducing the succession of the government,” he said. “The Fair Work Agency is our chance to change this.”
The UK has among the fewest labor inspectors in the Organization for Economic Co-operation and Development, with various estimates putting the amount of unpaid wages in the billions of pounds.
This means employers do not face “a credible threat of inspection, investigation or enforcement,” said Professor David Whyte, of Queen Mary University.
Whyte will publish a report with the Labor Rights Center on Monday with recommendations for the FWA, including adequate funding, unspecified audits and wrongdoing. The government has not yet announced the budget it will allocate to the FWA.
“It’s incredibly disappointing,” said Nick Clark, who previously sat on the federal agricultural abuse watchdog, then called the Gangmasters Licensing Authority.
He said it was surprising that none of the government’s priorities, which include “intelligence and data” and “public awareness and participation of participants”, mentioned the improvement of labor conditions.
As part of the legislation, an advisory board with representation from businesses, trade unions and independent experts has been established to inform the work of the FWA. They have not met and there has been no discussion with them about the priorities of the government. Tuesday’s launch will be followed by a grand launch in October, it is understood. The first comprehensive agency plan will be published in April 2027.
“The message I’ve heard so far is that they’re working on the basics, that they really want to communicate and collaborate,” said one board member. “Let’s not 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 abuse to get the rights they are entitled to.
“The agency will take tough action against businesses that willfully break the law while supporting employers who want to do the right thing and strengthen workers’ rights.”
#Fair #Work #Agencys #priorities #criticized #days #launched