The Labour Party announces plans for new Workers Protection Agency and Ministry for Employment

New Ministry for Employment Rights

In this week’s announcement, the Labour Party says it would create a new Ministry for Employment Rights overseen by a new Secretary of State for Employment Rights. This department would spearhead an expansion of individual and collective employment rights. The ministry “will be responsible for transforming our workplaces by delivering a huge rollout of individual and collective rights at work and implementing enforcement powers to make these rights meaningful”.

The proposal echoes Labour’s 2017 manifesto pledge to establish a ministry of labour. Responsibility for employment rights currently rests with the Department for Business, Energy and Industrial Strategy (BEIS).

New Workers’ Protection Agency

A Labour government would also create a new Workers’ Protection Agency to enforce employment laws and standards. This body would have “extensive powers to inspect workplaces” and litigate on workers’ behalf. Employers found to have fallen foul of requirements would be subject to penalties.

Currently, most employment rights are enforced by individuals through employment tribunals. However, some government bodies already enforce employment rights, particularly for the most vulnerable workers. For example, HMRC enforces National Minimum Wage compliance, the Gangmasters and Labour Abuse Authority has certain powers to tackle worker exploitation while the Equality and Human Rights Commission can investigate discriminatory practices.

Theresa May’s government has already acknowledged that the existing state enforcement landscape is fragmented. One of the flurry of consultations launched over the summer proposes the creation of a Single Enforcement Body, which would take over the existing work of various agencies and get additional enforcement powers over holiday pay for vulnerable workers and umbrella companies operating in the agency worker market.

It’s interesting that we are seeing both the Labour party and a Conservative administration express a willingness to expand the state’s ability to enforce employment rights. However, the Labour Party’s proposed Workers’ Protection Agency is likely to be more radical than that envisaged by the government’s consultation, in that its remit is likely to be more far-reaching and its approach to enforcement could differ.

State enforcement outside of the UK

Many other countries operate systems involving state enforcement of employment rights. To give just two examples:

• France has an “Inspection du Travail”. The inspector advises employers and individuals of their rights and obligations, and enforces compliance with the French Labour Code and collective bargaining agreements. It has wide powers, including the ability to enter a workplace without notice to inspect working conditions. Although the body has no power to resolve contractual disputes (individuals must turn to a tribunal for those complaints), individuals can complain to the inspector in the event of a suspected breach of (for example) rules relating to health and safety and working time. The inspector can refer matters for prosecution.
• The US has the federal Equal Employment Opportunity Commission (EEOC) and, in most states, a state equivalent agency. The EEOC enforces federal anti-discrimination laws (as opposed to state-specific anti-discrimination laws that are investigated by an equivalent state agency) and investigates complaints of workplace discrimination based on sex, race, religion and disability. If it makes a finding that discrimination has occurred, the EEOC will attempt to settle the complaint (called a “charge”). If that attempt is not successful, the EEOC may file a lawsuit and can go on to litigate the matter. It also offers educational and technical help to employers to prevent discrimination from occurring. When it comes to enforcement, the US body has a fiercer bite than the UK’s own Equality and Human Rights Commission – it resolved more than 90,000 discrimination charges and secured $505 million for victims in 2018 alone.

Other proposals announced by the Labour Party

Among Labour’s other proposals announced at the TUC conference – echoing some of its 2017 manifesto pledges – are:

• A strengthening of trade union rights and collective bargaining, by rolling out sectoral collective bargaining and reforming trade union laws.
• Expanding “worker” status to everybody except the “genuinely self-employed”.
• Removing the ability for agency workers to be engaged on a “Swedish derogation” contracts (but this derogation is already going to be removed on 6 April 2020 as part of the government’s Good Work Plan).
• A higher hourly National Minimum Wage of £10 by 2020 for all workers over the age of 16.
• Introducing a civil enforcement mechanism to enforce gender pay auditing compliance (presumably a reference to the current gender pay gap reporting scheme).
• The abolition of zero-hours contracts and unpaid internships.

More to follow

Parties will hold their annual conferences over the next few weeks, meaning we can expect to hear politicians from across the political spectrum rehearse the ideas that they believe will serve them well in the (potentially imminent) next election. Whoever is speaking, it seems likely that employment rights will be a hot topic.

With thanks to Fadi Sfeir of Capstan Avocats and Jeff Mokotoff of FordHarrison for their input.