The Department for Business, Energy and Industrial Strategy has created a single workers’ rights watchdog to stamp out modern slavery scandals in British factories.
The watchdog, which is yet to be given a name, will be a “one-stop shop” to enforce minimum wage laws, protect agency workers and eradicate modern slavery.
The new regulator will involve amalgamating three former bodies – the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and the National Minimum Wage enforcement team based at HM Revenue and Customs.
Any factories seen to be flouting minimum wage laws will have their products banned from sale, the BEIS threatened.
The watchdog will also be in the position to handle whistleblowers, holiday and sick pay disputes, and to educate workers so they know their rights.
It will also name and shame factories that continue to abuse wage laws, with fines of up to £20,000 per underpaid worker.
The BEIS is also still considering a garment trade adjudicator in future to further enforce better working conditions in the fashion industry and investigate retail supply chains.
The news comes in the wake of the Leicester supply chain scandal last July in which it was discovered Boohoo’s garment workers were being paid as little as £3.50 an hour.
Minister for small business, consumers and labour markets Paul Scully said: “The vast majority of businesses want to do right by their staff, but there are a minority who seem to think the law doesn’t apply to them. Exploitative practices like modern slavery have no place in society.
“This new workers’ watchdog will help us crack down on any abuses of workers’ rights and take action against companies that turn a blind eye to abuses in their supply chains, while providing a one-stop shop for employees and businesses wanting to understand their rights and obligations.”
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