LABOUR'S FAIR WORK AGENCY
LABOUR'S FAIR WORK AGENCY
"REAL TEETH" TO GET STUCK INTO "ROGUE" EMPLOYERS
Off the back of the publication of Labour’s plans to “Make Work Pay”, Deputy Leader and Shadow Minister for Future Work, Angela Raynor has given further details to The Observer over the weekend about Labour’s post-election plan to establish a new "Fair Work Agency" (FWA).
The eagle-eyed political observers will recall plans in the Conservative Party’s 2019 manifesto for the creation of a single enforcement body for workers’ rights, but following consultation in 2021, no further work has materialised.
Labour’s initiative aims to strengthen workers' rights and enforce employment laws more rigorously. Raynor has promised “more teeth” than the current framework for employment rights enforcement, with an agency which proactively addresses and prosecutes employers who violate employment laws.
The FWA: An Overview
Labour’s vision is to create a robust regulatory body dedicated to ensuring fair treatment in the workplace.
The primary objectives include:
Strengthening Enforcement: The FWA will have the authority to conduct investigations and prosecute employers who fail to comply with employment laws. This includes (amongst other elements) breaches of minimum wage regulations, unfair dismissals, and violations of workplace safety standards.
Promoting Fair Work Practices: The agency aims to promote fair working conditions, including secure employment contracts, reasonable working hours, and adequate rest periods. The FWA will also advocate for equal pay and non-discriminatory practices.
Supporting Workers: The FWA will provide support and guidance to workers, ensuring they are aware of their rights and have access to resources if they face workplace issues. This includes a dedicated helpline and advisory services.
Addressing Systemic Issues: By identifying and addressing systemic issues in various industries, the FWA will work towards long-term improvements in employment standards across the UK.
Impact for Employers and Key Preparations
Labour’s Shadow Chancellor Rachel Reeves has told the business community they have “nothing to worry about” when it comes to workers’ rights. Indeed, the FWA does not itself introduce new rights; the Make Work Pay report itself details wider plans for employment laws, as discussed here.
Raynor claims the goal is to create consistency in application of existing laws, and support good employers who are undercut by bad employers who are prepared to breach employment law without proper scrutiny.
“Should Labour win on 4 July, staying informed about the developments related to the Fair Work Agency and seeking professional advice when necessary will likely be crucial for navigating this new landscape. Horsfield Menzies are here to support employers in understanding and complying with these changes…”
However, in the event of a widely anticipated Labour victory in the election on 4 July, employers will want to prepare for increased scrutiny once a FWA is operational. Key areas to think about include:
1. Compliance and Enforcement
The FWA's enhanced enforcement powers mean that employers will want to ensure strict compliance. Proving compliance is helped by maintaining accurate records of wages, working hours, and employment contracts. Audits and inspections by the FWA may be on the cards, and non-compliance could result in penalties, including prosecution.
2. Employment Contracts and Conditions
Employers will need to review and possibly revise employment contracts to align with the FWA's standards. This involves ensuring contracts are clear, fair, and provide security for workers. Zero-hour contracts and other precarious employment arrangements will likely come under increased scrutiny, with the FWA pushing for more stable and predictable working conditions.
3. Wages and Pay Equality
One of the FWA's mandates is to ensure compliance with minimum wage laws and promote pay equality. Employers must be vigilant in adhering to wage regulations and addressing any disparities in pay among employees performing similar roles. This may require conducting internal pay audits and making adjustments to ensure fairness and compliance.
4. Workplace Safety and Wellbeing
Workplace safety is a critical focus area for the FWA. Employers will need to demonstrate adherence to health and safety regulations, providing a safe and healthy working environment. This includes conducting risk assessments, implementing necessary safety measures, and fostering a culture of wellbeing.
To navigate the changes brought by the FWA, employers should take proactive steps to ensure compliance and promote a fair working environment. Here are some key recommendations:
1. Conduct Internal Audits
Perform comprehensive audits of current employment practices, contracts, and wage structures to identify and address any areas of non-compliance. This will help mitigate the risk of penalties and ensure readiness for potential inspections by the FWA.
2. Review and Update Policies
Ensure that all workplace policies, including those related to wages, working hours, health and safety, and discrimination, are up-to-date and comply with the latest regulations. This may involve revising employment contracts, employee handbooks, and operational procedures.
3. Implement Training Programs
Provide training for management and staff on employment laws and fair work practices. This will help build awareness and understanding of the FWA's requirements and promote a culture of compliance and fairness within the organization.
4. Engage with Employees
Foster open communication with employees, encouraging them to voice concerns and provide feedback on workplace conditions. Establishing a transparent and supportive environment can help identify and resolve issues before they escalate to the FWA.
5. Seek Advice
Consulting with employment law specialists to navigate the complexities of new regulations can provide guidance on compliance, help interpret anticipated FWA's requirements, and assist in addressing any specific concerns related to your business.
Should Labour win on 4 July, staying informed about the developments related to the Fair Work Agency and seeking professional advice when necessary will likely be crucial for navigating this new landscape. Horsfield Menzies are here to support employers in understanding and complying with these changes, ensuring that their businesses can thrive in a fair and equitable working environment.