Select committee: Business, Innovation, Science and Trade Committee
Recommendation 21
3rd Report - Make Work Pay: Employment Rights Bill
Published 3 Mar 2025
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee Make Work Pay: Employment Rights Bill All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
The Government must ensure that the Fair Work Agency has the necessary powers to deter non-compliance. It must have the authority to investigate all forms of labour exploitation, up to and including modern slavery, and be adequately resourced to fulfil this remit. The Agency must build effective partnerships with the Police and the Home Office to tackle the most severe offences of modern slavery. We encourage the Fair Work Agency to make stronger use of the penalties it has across its remit to ensure better compliance. The Committee will be monitoring the effectiveness of the Fair Work Agency over the course of this Parliament. (Recommendation, Paragraph 99) 40
From: Business, Innovation, Science and Trade Committee, 3rd Report - Make Work Pay: Employment Rights Bill (HC 370), 3 March 2025
Government response
The government responded to the whole report on 22 May 2025 (deadline 3 May 2025).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out its position on each of the Committee's 15 recommendations, largely by describing existing plans, amendments already made and consultations to come, rather than adopting the Committee's specific changes.
- On guaranteed hours, the government says the initial reference period is "expected to be 12 weeks" and will consult on subsequent reference periods before making secondary legislation.
- On definitions of notice and shift changes, it is "satisfied that the powers in the Bill are necessary and justified", wishing to retain flexibility. The period of short notice will not be more than seven days, as stated on the face of the Bill.
- On employment status, it sees consulting on a simpler framework as "a longer-term goal", rather than rolling out reform alongside the Bill's commencement as the Committee recommended.
- On umbrella companies, it agrees timely action is imperative, has introduced an amendment to the Bill, and will consult on a bespoke regulatory framework "in due course".