Director of Labour Market Enforcement: Interim Annual Strategy 2024-25

Alongside the Minister with responsibility for employment rights, competition and markets, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), I am today publishing the labour market enforcement annual strategy for 2024-25, submitted by the Director of Labour Market Enforcement, Margaret Beels OBE. The strategy will be available on gov.uk.

The director’s role was created by the Immigration Act 2016 to bring better focus and strategic co-ordination to the enforcement of labour market legislation by the three enforcement bodies which are responsible for state enforcement of specific employment rights:

The Employment Agency Standards Inspectorate;

His Majesty’s Revenue and Customs national minimum and living wage enforcement team; and

The Gangmasters and Labour Abuse Authority.

Under section 2 of the Act, the director is required to prepare an annual labour market enforcement strategy that assesses the scale and nature of non-compliance in the labour market, and sets priorities for future enforcement by the three enforcement bodies and the allocation of resources needed to deliver those priorities. The annual strategy, once approved, is laid before Parliament. The director is a statutory office-holder independent from Government, but accountable to the Secretary of State for Business and Trade and the Home Secretary.

In line with the obligations under the Act, Margaret Beels submitted this strategy for 2024-25 on 25 March 2024—it has since been revised and resubmitted to the new administration. This strategy continues on from the 2023-24 strategy by using the same four themes to provide an assessment of the scale and nature of non-compliance, and notes sectors where the risk level has changed. The strategy sets out the DLME’s desire to achieve improved cohesion and join-up between the DLME and the three state enforcement bodies through non-legislative measures, including suggestions of where the enforcement bodies and sponsor departments should be focusing their efforts.

The Government’s view is that the enforcement bodies have been funded sufficiently to deliver the activities set out in the strategy. The DLME carried out stakeholder engagement for the 2024-25 strategy with a call for evidence. In previous years, the Government published a response to the strategy setting out the approach we will take to the recommendations. Following their submission, the enforcement bodies have had an opportunity to review the recommendations, and we have sought agreement on the recommendations ahead of publication of the strategy.

As part of the Government’s commitment and in line with the ambition set out in Make Work Pay, the Fair Work Agency will bring together existing state enforcement functions and incorporate a wider range of employment rights. The DLME, as do we, consider the recommendations to still be appropriate to not only co-ordinate the enforcement of labour market legislation currently, but to help pave the way for the FWA by continuing to support the close collaboration of the enforcement bodies.