A new government body, the Fair Work Agency, launches on 7 April to simplify and strengthen the UK’s fragmented labour enforcement system.
The agency will bring together responsibilities covering issues such as the national minimum wage, holiday pay and statutory sick pay, creating a single point of enforcement, and guidance for workers.
It will also combine several existing enforcement bodies – including the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate, and HMRC’s minimum wage enforcement team – into a single organisation, streamlining enforcement and making it easier for workers to report abuses within the UK’s labour market enforcement framework.
The agency is expected to have stronger powers to investigate workplaces, recover unpaid wages, and bring cases on behalf of workers, reducing reliance on individuals navigating the employment tribunal system.
Scale of wage loss remains significant
Labour abuses across the UK remain widespread and difficult to measure.
Workers are estimated to lose around £255mn in unpaid wages each year, alongside £3.1bn in unpaid holiday pay, according to the TUC’s submission on labour market enforcement.
These losses are often concentrated in sectors characterised by insecure work, subcontracting, and weak oversight – complicating enforcement and leaving many workers unaware of their rights.
Concerns over resources and effectiveness
While the creation of a single enforcement body has been broadly welcomed, unions and campaigners have raised concerns about whether it will be sufficiently resourced.
Research by the Resolution Foundation suggests that effective enforcement requires sustained investment and proactive inspections, rather than relying solely on workers’ complaints.
Without sufficient funding and staffing, there are fears the agency may struggle to investigate abuses or support workers effectively – particularly those already hesitant to come forward.
Some experts warn that, without a clear enforcement strategy, the agency risks failing to reach the most vulnerable workers it is intended to protect.
Garment workers and hidden exploitation
A new policy brief from Labour Behind the Label, a campaign organisation focused on improving conditions in the global garment industry, sets out what is needed to ensure the agency delivers for workers.
Its report, ‘Fair Work Agency: what workers need’, highlights the ongoing exploitation of low-paid and marginalised workers, including those in the UK textiles sector.
Previous investigations into factories in areas such as Leicester have exposed underpayment, unsafe conditions, and lack of oversight, illustrating how gaps in enforcement can persist even where legal protections exist.
Barriers such as fear of retaliation, insecure immigration status, and limited access to advice continue to prevent many workers from reporting abuse.
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A potential game changer – if it delivers
Dominique Muller, UK policy lead for Labour Behind the Label, said:
“A single enforcement body on labour exploitation could be a game-changer in the fight for worker justice and comprehensive labour rights. But the scale of the problem requires a well-resourced solution. Low-paid and marginalised workers, such as garment workers in the UK textiles industry, require accessible and trustworthy reporting mechanisms that help rather than hinder. They need support to take action against unscrupulous employers, not more threats from the Home Office.
“Importantly, we need to convince low-paid workers that taking action is worth their effort. We want workers and their representatives to be at the heart of designing solutions and delivering real change in their lives and their communities. We need a body that proactively reaches out to workers and breaks down barriers, rather than waiting for signals to come to them.
“In order to build a sustainable and ethical garment industry in the UK, we need to urgently ensure effective action can be taken against those who create and benefit from the exploitation and illegal activity in the industry – at home and abroad – including suppliers, brands forcing low prices onto their supply chain and unscrupulous factory owners. Without this, exploitation and environmental degradation linked to the fashion industry will continue.”
Beyond the UK: supply chains under scrutiny
The policy brief also points to the role of global supply chains in driving poor working conditions.
Under the UK’s Modern Slavery Act, companies are expected to identify and address risks in their supply chains, yet enforcement and transparency remain uneven.
Campaigners argue that pressure from brands to cut costs can contribute to labour abuses in the UK and overseas, raising ongoing questions about corporate accountability.
Building a system workers can trust
For the Fair Work Agency to succeed, campaigners argue, it must go beyond structural reform.
That includes building trust with workers, ensuring safe and accessible reporting channels, and taking proactive action against exploitative employers.
The involvement of workers and trade unions in shaping enforcement – alongside stronger co-ordination with existing regulators – will be key to achieving meaningful change.
This article is based on a press release from Labour Behind the Label, and edited by Kent and Surrey Bylines.
