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Consultation on the establishment of a new single labour market enforcement body in the UK

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Since the publication of the 2017 Taylor Review of Modern Employment Practice and the government’s subsequent Good Work Plan, we have been keeping you up to date with new regulations and proposals for implementing recommendations (earlier updates here and here).

The Good Work Plan news this week, against a backdrop of record levels of employment and growing wages,  is that the government has launched a consultation to consider the case for a new single labour market enforcement body.

The reason for the consultation and the potential new enforcement body arises out of the government’s recognition that “effective enforcement plays a vital role in giving individuals the confidence to challenge employers where they are denied their rights and it creates a level playing field between businesses”.  The proposed focus would be on protecting the most vulnerable workers’ employment rights.

The government’s vision is that a new single enforcement body could deliver extended state enforcement, a strong recognisable single brand, better support for businesses, pooled intelligence, co-ordinated enforcement action, more effective use of resources and closer working with other enforcement partners.

The government points out in the consultation briefing that other countries have taken steps to establish more streamlined inspectorate bodies, and in fact this type of body is recommended by the International Labour Organisation. International case studies are referred to and provide an interesting comparison. 

The proposal is that a new single labour market enforcement body would deal with the National Minimum Wage (currently enforced by HMRC); employment agency regulations (currently enforced by the Employment Agency Standard Inspectorate); umbrella companies; licences to supply temporary labour in high risk sectors e.g. agriculture and the fresh food chain (currently enforced by the Gangmasters Labour Abuse Authority); labour and worker exploitation; and holiday pay for vulnerable workers.  The government is also interested to hear views on whether the new body should play any role in the enforcement of Employment Tribunal awards.

The consultation closing date is 6 October 2019. The consultation can be accessed here. As usual responses are welcome online, via email or in writing.