What's Happening?
Marie van der Zyl, an employment partner at Keystone Law, advises HR professionals to prepare for the upcoming Fair Work Agency (FWA) in the U.K., which will enforce employment rights under the new Employment
Rights Bill. The FWA will consolidate multiple enforcement bodies, focusing on minimum wage compliance, worker exploitation, and holiday pay. HR teams are encouraged to audit risk zones, simplify policies, and train staff to ensure compliance and avoid penalties, which could be as high as 200% of the sum due.
Why It's Important?
The establishment of the FWA represents a significant shift in employment rights enforcement, potentially impacting businesses with low-paid or insecure workers. By consolidating enforcement efforts, the agency aims to reduce unfair competition and improve worker engagement. However, the increased scrutiny and potential penalties pose risks for employers who fail to comply. HR professionals must act proactively to mitigate these risks and adapt to the new regulatory environment, which could influence employment practices and labor market dynamics.
