Employment Rights Bill bitesize: Fair Work Agency
29 October 2024
The Employment Rights Bill was published on 10 October 2024, setting out a wide range of ambitious workplace reforms. For an overview of the Bill, see our ‘headlines’ article.
In this series of ‘bitesize’ articles, we look at different key provisions of the Bill in more detail, consider the implications for employers and explain what the next steps will be.
Fair Work Agency: what does the Bill say?
The Fair Work Agency (FWA) is established under the Bill as a single enforcement body, bringing together existing state enforcement functions and adding new ones, with the aim of improving compliance with employment rights.
Designed to amalgamate the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and the HMRC’s enforcement teams, the FWA will act as a single point of enforcement. It will be established as an executive agency of the Department for Business and Trade, with one leadership team to oversee work in line with a unified strategy.
The Bill confers a single set of powers to investigate and take action against businesses that do not comply with employment law, including the enforcement of employment tribunal awards, statutory sick pay, holiday pay and breaches of national minimum wage regulations. The FWA will also be able to issue civil penalties and to order employers to compensate workers, based on existing powers in the National Minimum Wage Act 1998.
The FWA will also provide support and guidance to workers, ensuring that they are aware of their rights and have access to resources to tackle workplace issues. This will be implemented by way of a dedicated helpline and advisory services.
The Government has published a separate factsheet summarising its proposals in relation to the Fair Work Agency.
What does this mean for employers?
The introduction of the FWA will not introduce any new rights, but we can expect enforcement to be more effective as a result. It will arguably have a limited impact on ‘good’ employers, but it is likely to mean that employees are more aware of their rights and how to enforce them. It will also provide greater clarity for employers, and the FWA will support employers by providing guidance on how to comply with different aspects of employment law.
Employers are encouraged to review their policies and procedures and ensure that these are robustly followed to avoid any penalties the FWA may be able to impose if breaches occur.
What are the next steps?
The Employment Rights Bill will be the first phase of implementing the FWA. The Bill itself is unlikely to enter law until 2025, with most expected reforms not due to take place until 2026 following consultation on any secondary legislation. Employers will have the opportunity to take advantage of the long lead-in period to review policies and ensure legal compliance.
Services
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at October 2024.