'The government is failing to tackle Britain’s insecure work and enforcement crisis', 08 June 2021

"For workers hoping for a step-change in the enforcement of workers’ rights, the government’s announcement that there will be a further delay to planned reforms is a kick in the teeth.

The government has unveiled plans to merge the existing labour market enforcement bodies, its flagship workers’ rights initiative. 

While designed to give the impression of progress, there is little sign that anything will change in the near future.  

There is no timetable for the necessary legislation, no promise of badly needed extra funds and overall the plans fall short of the systemic reforms that are needed to make sure workers can enforce their rights, swiftly and effectively. 

Urgent action is needed now. 

For too many workers, basic workplace rights like the national minimum wage and holiday pay are illusory because there is no effective enforcement.  

The latest pre-pandemic data shows that nearly half a million workers are paid less than the national minimum wage, and nearly two million employees miss out on holiday pay.  

What did we learn from the government announcement? 

• No action is being taken now. The government has kicked the can down the road and said that the merger of the Gangmasters and Labour Abuse Authority, the Employment Agency Standard Inspectorate and the HM Revenue and Customs NMW Enforcement team, will take place at an unspecified time in the future. 
• Despite the new body being tasked with additional responsibilities, including the regulation of umbrella companies and issuing fines for non-compliance with the Modern Slavery Act, no new funding has been confirmed. 
• The government has ignored recommendations from the previous Director of Labour Market Enforcement to introduce a “joint responsibility” pilot, which would have made large contractors more accountable for poor working practices in their supply chains. 
• The new body will enforce holiday and sick pay. This is welcome but this enforcement activity should already be happening. The government accepted this recommendation from the Taylor Review of Modern Working Practices in 2018. 
• The government has announced that the new body will also have new powers to tackle non-compliance, with the introduction of civil penalties for underpayment for the breaches under the gangmasters licensing and employment agency standards regimes that result in wage arrears..."