As the government tells its new watchdog to focus on “reducing burdens on business,” worker advocates warn the agency is being set up to fail.
The Fair Work Agency (FWA) launches this Tuesday with great fanfare as a cornerstone of Labour’s Employment Rights Act. Promising to crack down on minimum wage theft, holiday pay violations, and modern slavery, the agency is meant to be a long-overdue hammer against rogue employers.
But in a deeply troubling twist, the government has already asked the FWA to prioritize something else entirely: reducing regulatory burdens on business.
Yes, you read that correctly. Before the agency has even opened its doors, the Department for Business and Trade has reportedly instructed its incoming chair, Matthew Taylor, to make “thought leadership” and “cutting red tape” central goals for the agency’s first year.
“A Dead Duck Before It Begins”
Sharon Graham, general secretary of Unite the Union, which represents over a million workers, didn’t mince her words. She said these priorities show the FWA is “in danger of being a dead duck before it even begins.”
“For too long, workers have borne the brunt of disreputable employers who have had carte blanche,” Graham said. “The government needs to urgently ensure that the FWA focuses its attention on bringing rogue bosses to heel — not seeking ways to allow dodgy companies to continue bad behaviour.”
Her frustration is shared across the labour movement. Caroline Robinson, director of the Worker Support Centre — a charity supporting migrant workers — called the government’s recommendations “deeply concerning.”
“It’s contradictory to introduce a new regulator for the purpose of reducing regulatory burdens,” Robinson said. “Labour enforcement has been decimated over the past 20 years by successive government cuts. The Fair Work Agency is our opportunity to reverse this.”
The Shocking Reality of UK Labour Enforcement
Let’s be clear about the scale of the problem the FWA is supposed to tackle. The UK has among the fewest labour inspectors per worker of any OECD country. Unpaid wages run into the billions of pounds. Employers face, in the words of Professor David Whyte of Queen Mary University, “no credible threat of inspection, investigation or enforcement.”
None of the government’s listed priorities — which also include “intelligence and data” and “public awareness” — even mention improving conditions for workers. Nick Clark, formerly a board member of the government’s agricultural exploitation watchdog, said it was “fantastically depressing” to see workers’ welfare entirely absent from the list.
What Workers Actually Need
Whyte, along with the Institute of Employment Rights, will publish a report on Monday laying out what a real, pro-worker enforcement agency would look like: adequate funding, unannounced inspections, and actual prosecutions for employers who steal wages or exploit vulnerable people.
So far, the government hasn’t even announced the FWA’s budget. An advisory board meant to include union representatives hasn’t met yet, and wasn’t consulted on these priorities. The agency’s first full strategy won’t be published until April 2027.
A Glimmer of Hope — But No Room for Complacency
One board member has urged critics to “give them the benefit of the doubt,” noting that officials are still “working on the very basics” and want to be “consultative and collaborative.”
But workers have heard that before. After two decades of cuts and neglect, patience is in short supply. The government’s own spokesperson insists the FWA will “take tough action against businesses that deliberately flout the law” while supporting employers who “want to do the right thing.”
That balance is possible — but only if the agency’s primary loyalty is to the workers it was created to protect, not to reducing paperwork for the very bosses who have spent years exploiting loopholes.
The FWA launches on Tuesday. Workers will be watching closely to see whether it arrives as a champion or a compromise.
Source: The Guardian