I am pleased to announce the latest steps the Government are taking today to better protect and enforce workers’ rights, as we look to build back better from covid-19.
Firstly, the Government have today published their response to our 2019 consultation on creating a single enforcement body for employment rights. This Government have been absolutely clear that we will do whatever we can to protect and enhance workers’ rights, and this new body will help the country build back better by taking a smarter approach to the enforcement of employment law.
Today’s response to the consultation sets out the overarching details of the new body. Responsibility for tackling modern slavery, enforcing the minimum wage and protecting agency workers—currently spread across the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and HMRC —will be brought under one roof, creating a comprehensive new authority.
This “one-stop shop” approach will help improve enforcement through better co-ordination and pooling of intelligence, and providing a single, recognisable port of call for workers so they know their rights and can blow the whistle on bad behaviour. It will also make it easier for the vast majority of responsible businesses to do the right thing by their employees by providing clear guidance on their obligations.
Our consultation response also confirms that we will extend state enforcement to cover holiday pay and statutory sick pay for vulnerable workers and will regulate umbrella companies. The new body will also enforce financial penalties against organisations that do not meet requirements to publish modern slavery statements, as well as run the unpaid tribunal awards penalty scheme.
Protecting workers requires both support for business—so employers understand how to comply—as well as effective, visible enforcement action to deter irresponsible employers from undercutting the vast majority who want to do right by their workers. The body will have a spectrum of powers and responsibilities to achieve this, including compliance notices and civil penalties, as well as the power to prosecute.
The single enforcement body will be delivered through primary legislation and is the latest initiative in this Government’s wider efforts to protect workers’ rights. In the last year alone, the Government have boosted the minimum wage for around 2 million employees, protected furloughed workers’ parental pay, cracked down on restrictive employment contracts, and more.
Secondly, as well as modernising our enforcement regime, the Government are today publishing their consultation responses on bringing the Certification Officer in line with other regulators; these reforms will implement technical measures passed by Parliament via the Trade Union Act 2016, providing reassurance to union members and the wider public.