Source · Select Committees · Business and Trade Committee
Recommendation 21
21
Accepted
Ensure Fair Work Agency has powers and resources to investigate labour exploitation
Recommendation
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
Government Response Summary
The government states the Fair Work Agency will inherit and expand upon existing powers, including the ability to issue special warnings and enforce certain Fraud Act offences, thus strengthening its capacity to investigate a wider range of serious labour exploitation cases.
Government Response
Accepted
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.