Worker rights agency will target rogue firms

Rogue employers will be targeted by a new enforcement agency to protect sweeping changes to rights at work for millions of Britons outlined in a “watershed” bill published today.

- Jessica Elgot

The Fair Work Agency will be created as part of the employment rights legislation, which will include more protection against unfair dismissal and exploitative contracts.

Officers will have inspection powers and be able to enforce penalties for those who breach the rights. Whistleblowers will be encouraged to report bad behaviour to the agency.

Its powers will not be limited to the new rights but will also enforce a range of current entitlements, including the national minimum wage and aspects of the Modern Slavery Act.

The deputy prime minister, Angela Rayner, told the Guardian today's bill was a "watershed moment". It was "the biggest overhaul of workers' rights in generations", she said.

"This is a government by working people, for working people, and our purpose is crystal clear - to make work pay," Rayner added.

The implementation of the new body will be subject to consultation. The earliest estimate for the new rights taking effect is autumn 2026.

The employment rights bill was promised within 100 days of Labour taking office but has been the subject of wrangling between ministers, trade unions and businesses.

A last-minute concession was made on a longer statutory probation. The government will now aim to make that nine months, having previously suggested that it would recommend six months.

Rachel Reeves, the chancellor, had been thought to favour an even longer 12-month maximum period.

But despite the last-minute nature of the deal, trade unions have widely heralded the changes, which the TUC called a "seismic shift". Small businesses, however, have said the changes are rushed and chaotic - in order to meet an arbitrary timeframe.