Ben Willmott, head of public policy at the Chartered Institute of Personnel and Development (CIPD), said the FWA, which was previously proposed in a review of workplace practices ordered by former prime minister Theresa May, would play a crucial role in Labour’s plans.
He said: “The Fair Work Agency is arguably the most important element of Labour’s plans to make work pay. But there’s little point in bringing new regulation if it’s not not enforced effectively.”
The Gangmasters and Labour Abuse Authority (GLAA), which investigates exploitation by employers, as well as the National Minimum Wage unit, which enforces the legal minimum, may be folded into the new super regulator as part of the plans.
It would also enforce rights around sick and holiday pay, which Labour has pledged to strengthen.
However, existing backlogs in checks mean there is a danger that businesses determined to break the rules will be able to do so with impunity.
Mr Willmott pointed to data that shows many people are already waiting 18 weeks or more for an employment tribunal hearing, while the average employer can expect an inspection on the minimum wage “once every 500 years, rising to once in every 200 years in low paid sectors such as accommodation and food services”.
He said: “The evidence is that our labour market enforcement system is pretty broken, so if we’re looking to improve employment standards, I would say that the first thing I would do would be to improve enforcement. The key thing is this isn’t just about more inspectors, it’s also about a much stronger focus on supporting employers to comply.”
He also warned that small and medium-sized enterprises, which account for almost two-thirds of UK employment, were at greatest risk of unintentionally falling foul of new laws.
“It’s basic stuff like not having a written employment contract or terms and conditions of employment,” he said. “So if there is a really heavy handed approach, then a very significant proportion of employers could potentially be at risk.”
The Government has been contacted for comment.