The government announced proposals yesterday to create a single labour market enforcement body, which will have the powers to enforce minimum wage and holiday payments.

The proposal, announced by Business Secretary Greg Clark, were part of the government’s latest measures to advance its ‘Good work plan’. 

Under the measures, workers would be given enhanced rights to tackle unscrupulous employers who do not comply with the law.

“We have a labour market that we can be proud of with more people in work than ever before,” Clark said. “But it’s right that hard-working people see their rights upgraded and are protected from exploitative practices, whilst ensuring we create a level playing field for the vast majority of businesses who comply with employment laws.”

On the proposed single labour market enforcement body, Clark said, “A new single labour market enforcement body will bring together our different enforcement partners putting all our expertise in one dedicated place, better protecting workers and enforcing their rights now and into the future.”

Clark also confirmed that Matthew Taylor, the architect of the Taylor Review of modern working practices has been appointed as the interim Director of Labour Market Enforcement.

The government also launched a consultation on the proposals for the new single labour market enforcement body.

“A new single body would create a strong, recognisable single brand and would make it easier for individuals to know where to go for help. It will also be better able to support businesses to help them comply with the law,” the announcement stated.

The proposals include the body having consistent powers to enforce payment of the minimum wage, labour exploitation and modern slavery, along with holiday payments for vulnerable workers and safeguarding agency workers. The consultation considers whether the body should also enforce workplace discrimination, harassment and bullying.

Peter Cheese, Chief Executive of the Chartered Institute of Personnel and Development, also commented, “Stronger understanding and enforcement of employment rights is essential for creating fairer, more inclusive workplaces. The creation of a single enforcement body is an important step towards achieving better working lives for the UK’s most vulnerable workers. We welcome the government’s proposals and the recognition that tougher enforcement needs to go hand in hand with better support for businesses, many of which can fall foul of employment legislation unwittingly.

The government first unveiled its ‘Good work plan’ last year with the plan promising millions of flexible workers new rights. The plan sets out a series of major government reforms aimed to increase the rights and protections of workers, including those who work in the gig economy.