Employment Rights Bill

Lord Carter of Haslemere Excerpts

Committee stage
Monday 16th June 2025 Lords Chamber

Amendment 271 seeks to enhance transparency and effectiveness in enforcement. It would require enforcement officers to report annually on how existing schemes and accepted standards are being used to support their work. Again, I ask the Minister whether the Government are considering a mechanism like this to ensure that enforcement standards and efforts are aligned with existing frameworks and standards. I look forward to the Minister’s response. I beg to move.

[Lord Carter of Haslemere (CB)]

My Lords, I will speak to Amendments 263A and 279ZZA, which in content are quite closely connected with the amendments that the noble Lord, Lord Sharpe, has been discussing. It was gracious of the Minister to meet me to discuss my amendments. This is how the legislative process should ideally work, with give and take on both sides, and I am looking forward to the “give” bit of that from the Government.

My Amendment 263A seeks to ensure that the Secretary of State cannot direct enforcement officers in how and when they exercise their powers. As the Bill stands, enforcement officers will have no separate legal identity from that of the Secretary of State. They will simply be part of a so-called fair work agency that will have no independent legal status. This is why the fair work agency is not mentioned in the Bill, which refers only to the Secretary of State and his or her enforcement officers. Legally, the so-called fair work agency is the Secretary of State.

Because enforcement officers will, for legal purposes, be the Secretary of State, Ministers and their advisers would, but for my amendment, be able to direct the way they exercise their enforcement powers. As belt and braces, Clause 87(6) confirms this where it provides that an enforcement officer can exercise his or her powers only “to the extent specified” in their appointment by the Secretary of State.

So what are those enforcement powers? Under Clause 93, enforcement officers will be able, at the bidding of Ministers, to require a person

“to attend at a specified time and place and to provide information by answering questions”

or providing documents. Under Clause 94, they will also be able, at the bidding of Ministers, to

“enter any premises, and … inspect or examine … or … seize”

documents and retain them for as long as necessary, as well as examine computers. No warrant of a court generally seems to be necessary to enter business premises; a warrant will be required only to enter a dwelling, a place where people live.

Let us be clear, Ministers will acquire all the powers of the Gangmasters and Labour Abuse Authority, which is being abolished. These powers include investigating possible labour market abuse and breaches of modern slavery legislation, HMRC’s powers to investigate compliance with the national minimum wage and the powers of the director of labour market enforcement. The full list of legislative powers transferring to the Secretary of State is set out in Schedule 7, paragraph 35 of which confers an extraordinarily wide Henry VIII power on the Secretary of State to add, by regulations, any enactment that affects the rights of employees and trade unions and the duties of employers.

This is not all. Clause 98 allows enforcement officers—let us remember that that is the Secretary of State—to be granted certain police powers under the Police and Criminal Evidence Act, including to search, arrest and interview suspects in relation to labour market offences. The Bill before us would transfer all this to the Secretary of State. It is a startling acquisition of intrusive new powers by the Executive. Effectively, the Secretary of State will, through his or her enforcement officers, have his or her own employment rights police force to direct operationally in whatever way he or she chooses. This is in contrast, for example, to our regular police forces and the National Crime Agency, which are both operationally independent of the Home Secretary. It is unlike HMRC, which is a non-ministerial department, precisely to ensure that it operates at arm’s length, with complete operational independence from Ministers to ensure that the administration of the tax system is fair and impartial. It is also unlike the soon to be abolished Gangmasters and Labour Abuse Authority, the day-to-day operational activities of which are, as a non-departmental public body and not part of the Crown, currently independent from government.

In its report on the Bill of 4 April 2025, the Constitution Committee said:

“Powers to enter and search premises and to seize property represent a significant interference with individual liberty. They are ordinarily vested only in recognised legal officials who typically operate independently of, or at least at arm’s length from, the government. Given the range of enforcement powers potentially exercisable under the Bill on behalf of the Secretary of State, we are concerned that the Government has not provided sufficient reassurances about the safeguards for this regime”.


This is the point of my Amendment 263A. It is imperative that the Bill makes crystal clear that enforcement officers appointed by the Secretary of State enjoy complete operational independence from Ministers and their advisers in the way they carry out their wide-ranging and draconian powers. If it does not, it is not impossible to imagine an unscrupulous Secretary of State requiring them to operate in a way that is not in the public interest and might even constitute an abuse of power, to target an unfriendly media organisation for political purposes or for some other wholly inappropriate purpose—who knows?

To quote the great Master of the Rolls, Lord Denning, in the iconic constitutional case of R v Commissioner of Police of the Metropolis, ex parte Blackburn, establishing the operational independence of the police, the commissioner of police

“is not the servant of anyone, save of the law itself. No Minister of the Crown can tell him that he must, or must not, keep observation on this place or that; or that he must, or must not, prosecute this man or that one … The responsibility for law enforcement lies on him. He is answerable to the law and to the law alone”. 

This analogy is not perfect, but the principle is the same: it is the importance of operational independence from Ministers by those exercising investigatory and enforcement powers.

My second amendment in this group, Amendment 279ZZA, seeks to ensure that exactly the same inspection, complaints, misconduct, governance and accountability arrangements as currently apply to the Gangmasters and Labour Abuse Authority apply to enforcement officers when they are exercising their extensive powers of oversight, inspection, training and accountability, and complaints procedures. Some of the amendments to which the noble Lord, Lord Sharpe, has spoken are getting at the same thing by a different route.

This is all the more necessary given that the powers of the independent Gangmasters and Labour Abuse Authority, which is a non-departmental public body and therefore a non-Crown body, are passing to the Secretary of State. The Minister may say that the Secretary of State is sufficiently accountable for enforcement officers because of the requirement for an annual report to be laid before Parliament, detailing the extent to which enforcement functions are being exercised in accordance with the labour market enforcement strategy. However, that is akin to marking your own homework.

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[Baroness Jones of Whitchurch (Lab)]

I did cover that, but now I have forgotten what my answer was. I will write to the noble Baroness, but I think it was in my earlier contribution.

I reiterate on the small business question that businesses that comply with their obligations should not see any increased burden from enforcement activity. The fair work agency will target only the minority of employers engaged in illegal practices, so including specific carve-outs could create loopholes that bad actors might exploit. In fact, businesses of all sizes stand to benefit from a fairer labour market where exploitative practices are actively addressed as this will create a level playing field for all.

Let us not forget that we are creating the fair work agency to deliver an upgrade to the enforcement of workers’ rights. If we created a carve-out for businesses based purely on size, we would be creating a two-tier system for enforcement. This is unfair for workers and businesses.

Amendment 268 risks compromising the balanced representation of the advisory board. The current drafting has been carefully chosen to reflect the social partnership model that has served the Low Pay Commission and ACAS well for many years. The noble Lord, Lord Sharpe, asked on behalf of his noble friend Lord Holmes whether representatives of labour market standards would be on the advisory board. The Secretary of State will appoint individuals if they are considered to be independent experts. That recruitment and selection process will include a thorough assessment of the applicant’s qualifications, experience and potential conflicts of interest.

Vulnerable workers have been waiting for the fair work agency for years. It will deliver the worker protection enforcement authority that was proposed in the Liberal Democrat 2024 manifesto and the single enforcement body that was the policy of successive Conservative-led Administrations. It now forms a key plank of the plan to make work pay, a key manifesto pledge upon which this Government was elected. Bringing together the fragmented labour market enforcement landscape has been a policy aim for successive Governments. We cannot let this critical policy be delayed any more. I therefore ask the noble Lord to withdraw Amendment 263ZA.

[Lord Carter of Haslemere (CB)]

I am very grateful for what the Minister said in response to my amendments. I think she said that the framework document will state that enforcement officers will have complete operational independence from Ministers, which is reassuring to know. Presumably, therefore, it would be possible for the terms of appointment of enforcement officers under Clause 87(6) to state the same thing. Clause 87(6) states that:

“A person appointed under this section may exercise any powers of an enforcement officer to the extent specified in the appointment”.


There is another perfect place in which to reassert that they are operationally independent of the Secretary of State.

[Baroness Jones of Whitchurch (Lab)]

I said earlier in my contribution that the letters of appointment made to these people will spell out their duties. Obviously, their relationship to the Secretary of State will be spelled out in the letter of appointment. I have said several times now that they will be operationally independent, so that could be a key message in those letters of appointment.