New watchdog created to protect the rights of UK workers
A powerful new workers’ watchdog will be created to protect the rights of UK workers, the Government has confirmed.
Responsibility for tackling modern slavery (defined as compelled service, forced labour, human trafficking and exploitation), enforcing the minimum wage and protecting agency workers – currently spread across three different bodies – will be brought under one roof, creating a comprehensive new authority that will ensure businesses that break the rules have nowhere to hide.
This ‘one-stop shop’ approach will help improve enforcement through better coordination and pooling intelligence. The new watchdog will also enhance workers’ rights by providing a single, recognisable port of call for workers so they know their rights and can blow the whistle on bad behaviour.
The body will support businesses to do the right thing by their employees by providing guidance on their obligations to staff. Meanwhile, increased enforcement will make sure good businesses aren’t undercut by unscrupulous rival employers who aren’t paying or treating their workers correctly.
As well as enforcing all existing powers belonging to the three agencies, the new body will have a new ability to ensure vulnerable workers get the holiday pay and statutory sick pay they are entitled to – without having to go through a lengthy Employment Tribunal process.
Business Minister Paul Scully said:
“This Government has been absolutely clear that we will do whatever we can to protect and enhance workers’ rights. The vast majority of businesses want to do right by their staff, but there are a minority who seem to think the law doesn’t apply to them. Exploitative practices like modern slavery have no place in society.
“This new workers’ watchdog will help us crack down on any abuses of workers’ rights and take action against companies that turn a blind eye to abuses in their supply chains, while providing a one-stop shop for employees and businesses wanting to understand their rights and obligations.”
The plans, confirmed in a consultation response published last week (8 June), come as part of the Government’s wider efforts to protect workers’ rights. The Government’s plans will see the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and HMRC’s National Minimum Wage Enforcement combined to create a single enforcement body.
The new body will continue the successful Naming and Shaming scheme, which calls out companies who fail to pay workers what they are owed and can hit rogue employers with fines of up to £20,000 per worker. This enforcement activity will be extended to cover other regulations protecting the pay of workers employed through agencies or by gangmasters in the agricultural sector.
To help businesses understand the rules, the new body will provide guidance on best practice, complementing the work already carried out by existing authorities such as the Advisory, Conciliation and Arbitration Service (ACAS). It will seek to build strong links with community and worker groups to spread awareness and support engagement with at-risk groups, including the low-paid and those in sectors like construction and agriculture that could be at higher risk of abuse.
ACAS Chief Executive, Susan Clews said:
"We welcome the Government’s proposals today that aim to protect and enhance workers’ rights. ACAS already plays an important role in ensuring compliance with workplace rights through our guidance and training for both workers and employers and referring cases of unlawful practice to the enforcement authorities. We look forward to working closely with this new body to tackle cases of abuse and to improve the range of help and support provided to employers and employees.”
Ben Willmott, Head of Public Policy at the CIPD, was less confident about the potential success of the new body, however. He said:
“The success of the new Single Enforcement Body to crack down on abuses in the labour market, protect employment rights and support employer compliance will hinge on whether it receives sufficient resources to do its job. Effective enforcement is key to ensuring workers have access to good work and their employment rights, however fixing the current inadequate system won’t be easy.
“The UK currently has one of the worst resourced labour inspectorates in Europe. There’s a need to significantly boost the number of inspectors and increase the number of proactive inspections of workplaces if the new body is to be more effective than existing enforcement mechanisms.
“For the new body to be a true game changer it also needs to have a much stronger focus on supporting employers – particularly small firms – to comply with employment law. It should also help reinforce the individual enforcement of employment rights through the Employment Tribunal system and should take full responsibility for taking action against employers that fail to pay compensation to workers awarded by the courts.”
The new enforcement body will be established through primary legislation when parliamentary time allows.
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