Draft Employment Rights Act 2025 (Investigatory Powers) (Consequential Amendments) Regulations 2026

Harriett Baldwin Excerpts

Tuesday 10th March 2026 General Committees

[Dame Harriett Baldwin (West Worcestershire) (Con)]

It is an absolute honour to serve under your chairmanship, Mr Stuart; you delivered the title of this legislation with a dryness that belies its purpose and impact on our economy. The instrument looks tiny—there is hardly anything in it—yet I am going to argue that the Committee should vote against it this afternoon. It may look like a technical mechanism, and the Minister described it as such, but it equips the Fair Work Agency with state-level surveillance tools previously reserved for tackling the serious and organised crime that occurs in the gangmaster sector, and applies those investigatory powers across our entire economy. The creation of the Fair Work Agency, a consolidated super-regulator with enhanced snooping powers, represents a significant overreach of the state into the private operations of British businesses.

I hope that not only my Conservative colleagues, but possibly Labour colleagues, and certainly Liberal Democrat colleagues, will vote against this instrument. Currently, the Gangmasters and Labour Abuse Authority focuses on high-risk industries, such as agriculture and fishing, where there have been abuses. These changes will allow the Fair Work Agency to snoop everywhere across every workplace in this country. We oppose this statutory instrument as it formalises the transition towards a more litigious and more monitored labour market, which will inevitably stifle start-ups and entrepreneurs and increase the regulatory burden on small and medium-sized enterprises. It is not a proportionate or balanced approach to enforcement.

We have heard repeatedly from business groups about the cumulative pressure that they are under. The British Retail Consortium has warned that margins in retail are already at breaking point. The Confederation of British Industry speaks of a “chilling” effect on hiring as firms brace for more aggressive enforcement. This instrument will give those powers. The Federation of Small Businesses has been clear that tighter scrutiny, combined with rising employment costs, will force many small firms to reduce hours, cut staff or automate roles entirely—something that we are sadly already seeing in the monthly unemployment statistics.

The Minister claimed that the statutory instrument simply ensures continuity following the abolition of the Gangmasters and Labour Abuse Authority. Of course it does as far as that sector is concerned, but in so doing widens that to the entire economy via the Fair Work Agency. It is not a like-for-like replacement. We are seeing a super-regulator with a far wider remit and far stronger powers. Those reasons, alongside our commitment to repealing the vast majority of the job-destroying Employment Rights Act, are why we oppose this statutory instrument today. We urge all other hon. Members to do so, too.

[Sarah Olney (Richmond Park) (LD)]

I was not planning to make a speech, but since the shadow Minister, the hon. Member for West Worcestershire, said she plans to vote against this statutory instrument and invited me to join her, I feel I should get some remarks on the record on behalf of my party. I thank her for her kind invitation, but I plan to vote with the Government on establishing the Fair Work Agency, in line with the policy of my party throughout the progress of the Employment Rights Bill.

We support the setting up of the Fair Work Agency. It brings together the powers of several different bodies into one unified place, and that is really important. I hear what the shadow Minister is saying about extending the GLAA powers, but I think there is a bigger win here in setting up the Fair Work Agency: it would not only provide a better route for employees to establish their rights in the workplace, but relieve the burden of tribunals from employers, if it works as intended.

[Dame Harriett Baldwin]

I am genuinely shocked and surprised to hear the Liberal Democrat line, because I seem to remember when these investigatory powers—including the right to snoop on communications—were first brought in, the hon. Lady’s party was vehemently against them, yet here we are giving these powers to an agency that will cover every job in this land.

[Sarah Olney]

I hear the hon. Lady, but I repeat what I said: the setting up of the Fair Work Agency is an important step towards ensuring that employees can assert their rights in the workplace and that employers will not be burdened unduly with the costs of tribunals. That is why the Liberal Democrats have supported the setting up of the Fair Work Agency from the start.