Labour’s newly established Fair Work Agency will have the power to arrest suspects, use “reasonable force,” and conduct surprise workplace inspections under the government’s landmark Employment Rights Act.
Officials confirmed the agency can enter premises without consent if it obtains warrants under the Police and Criminal Evidence Act 1984.
It may also search individuals, seize materials, and detain those suspected of labour market offences.
The powers, described in government documents as enforceable “where reasonable and necessary,” make the FWA a central enforcer of protections, including minimum wage, holiday pay, sick pay, and modern slavery regulations, GB News reported.
Angela Rayner championed the legislation before stepping down as Deputy Prime Minister last year. The agency has been allocated an annual budget of £60.1 million — more than £12 million higher than the combined funding of its predecessor bodies — reflecting the expanded regulations it must enforce.
Business leaders have voiced concerns about the agency’s extensive powers. Alex Hall-Chen warned that the FWA already has “significantly broader powers than its predecessor enforcement bodies, including the authority to enter business premises without a warrant.” He added that instructions to expand its remit could lead to further growth in its powers without proper scrutiny.
Tina McKenzie said small businesses, already grappling with the Employment Rights Act, require clear guidance rather than the prospect of a wider enforcement role. She also highlighted the pressure on Britain’s employment tribunal system, which is currently facing record backlogs.
Andrew Griffith criticised the remit letter, arguing it would inevitably “add more staff and create more red tape, which will raise unemployment even further,” and said the Conservatives would abolish the agency if elected.
The Employment Rights Act is being described as the most significant overhaul of workplace protections in a generation. Ministers say it will benefit more than 15 million workers — roughly half of the UK workforce — introducing measures such as day-one entitlement to sick pay and a simplified unfair dismissal claims process.
The FWA can impose financial penalties on non-compliant firms and initiate tribunal cases on behalf of workers. Government sources insisted the agency “consolidates existing powers to ensure businesses know where to turn and spend less time on bureaucracy,” and that it is intended to punish rogue employers while protecting compliant businesses.
