Recommendation 20

HM Government Accepted

The Fair Work Agency (FWA) will play a crucial role in combating serious labour exploitation. The FWA will inherit the full suite of investigatory and enforcement powers of the Gangmasters and Labour Abuse Authority (GLAA), HMRC’s National Minimum Wage enforcement team, and the Employment Agency Standards Inspectorate. Far from diluting powers, the FWA expands their reach such that they can address a wider range of labour market offences. Furthermore, the Employment Rights Bill will upgrade enforcement against serious labour exploitation. The Bill will fill a gap in GLAA’s existing powers and enable FWA enforcement officers to issue “special warnings” to suspects following arrest and during interview, informing them that refusing to answer questions about certain items or whereabouts could be used against them in court. The Bill will also give the FWA the ability to enforce offences under the Fraud Act 2006 that prohibit exploitative practices (fraud by abuse of position), such as withholding wages or misrepresenting employment terms. Since 2023 the GLAA has had to drop 104 cases of serious labour exploitation involving migrant workers, because the cases did not amount to modern slavery and fell outside its remit. By including this in the FWA’s remit it will allow such cases to be investigated and strengthen the FWA’s ability to tackle serious labour abuse.