Employment Rights Bill | Single Enforcement Body

A new Labour Market Enforcement Body, the Fair Work Agency, will consolidate and strengthen enforcement of workplace rights, including minimum wage, sick pay, and holiday pay compliance.

The Bill contains extensive provisions regarding the formation of a Labour Market Enforcement Body called the “Fair Work Agency”, to strengthen the enforcement of workplace rights.

This body will consolidate the enforcement roles currently handled by the HMRC – specifically National Minimum Wage and SSP compliance/enforcement, the Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate, with the remit of enforcing employment rights and compliance.

It will also be responsible for enforcing holiday pay. The intention is to create a strong, recognisable single brand so individuals and businesses know where to go for help. It will also have strong powers to inspect workplaces and take action against any breaches.

Further changes to the Bill were made this year which would give the Secretary of State and the Fair Work Agency the power to pursue Tribunal claims on workers’ behalf, as well as provide assistance to workers pursuing claims. In addition, there would be powers to issue a notice of underpayment on an employer for underpaying certain statutory payments, including SSP and holiday pay, which can include a penalty of 200% of the sum owed, up to a maximum of £20,000 per individual involved. This must be paid within 28 days of the notice, with the penalty reduced by 50% if paid within 14 days. As with many of these provisions, further regulations will add more detail.