New Fair Work Agency risks becoming a ‘toothless watchdog’, experts warn
Published: 10 April 2026
Commentary
A joint briefing from the Institute of Employment Rights warns that the Government’s new workplace watchdog, the Fair Work Agency, risks failing to deliver meaningful protections for workers unless urgent changes are made.
Authored by Professor David Whyte (Queen Mary University of London) and Professor Ruth Dukes (University of Glasgow), the report highlights long-standing weaknesses in how workplace laws are enforced across the UK. It warns that, without significant changes, the new Agency could repeat the failures of the past.
A new agency, old problems?
The Fair Work Agency was recently launched to bring together several enforcement bodies into one organisation, with the aim of improving compliance with employment law.
However, the briefing argues that the Agency will be operating within a weakened system. Funding for enforcement has fallen by at least 58% in real terms, while workplace inspections and enforcement activity have declined sharply over the past 15 years.
As a result, the report suggests there is currently little real deterrent for employers who break the law. Unannounced inspections are rare, and the risk of prosecution is seen as minimal.
There are also concerns that the growing overlap between labour market enforcement and immigration control is discouraging vulnerable workers from reporting exploitation.
Without reform, the authors warn, the new body risks becoming “another toothless watchdog”.
What needs to change?
The briefing sets out several recommendations for the UK Government, including:
- Properly funding the Agency, with ring-fenced resources to support its expanded role
- Introducing a stronger inspection regime, including unannounced workplace visits
- Creating a credible threat of prosecution for employers who do not comply with the law
- Giving trade unions a central role in enforcement, including the power to bring cases to court
Expert views
James Harrison, Director of the Institute of Employment Rights, said the new Agency must build on existing evidence:
“There are very clear steps that must be taken if the rights of workers are to be strengthened. This briefing sets out those steps.”
Professor David Whyte added:
“The history of workplace regulation in this country is one of weak enforcement, chronic underfunding and deference to big business. Without proper powers and resources, the Agency risks becoming just another toothless regulator.”
Professor Ruth Dukes emphasised the importance of enforcement:
“Labour protections are only meaningful if they are enforced. It’s time for the government to take this seriously and ensure workers’ rights are upheld.”
What happens next?
The Fair Work Agency is due to launch on 7 April 2026 under the Employment Rights Act 2025. It will bring together several existing labour market enforcement bodies into a single organisation.
The briefing draws on extensive research into workplace regulation in the UK, pointing to years of reduced funding and declining inspection activity.
First published: 10 April 2026