Fair Work Agency

The Employment Rights Bill gives the government power to delegate its enforcement powers to a new body, likely to be called the Fair Work Agency (FWA).

The FWA will combine the current enforcement roles of three separate bodies: HMRC (in relation to the national minimum wage), the Gangmasters and Labour Abuse Authority (in relation to labour exploitation) and the Employment Agency Standards Inspectorate (in relation to agency workers).

It will also take on the powers of the Director of Labour Market Enforcement, which will be subsumed by the new body (for example, the ability to levy financial penalties on employers who fail to pay tribunal awards).

The FWA will have some additional jurisdictions, including in relation to SSP and holiday pay. Further jurisdictions may be added to its remit by future regulations.

The Bill sets out a range of enforcement powers, including powers to enter business premises to obtain documents. The FWA will be able to issue fines if employers do not uphold protections within its remit.

It’s likely to take at least a couple of years before the FWA is up and running.

The previous government consulted in 2021 on setting up such an agency but it came to nothing.