The government has appointed Matthew Taylor, author of the landmark Taylor Review of Modern Working Practices, as the first chair of the new Fair Work Agency – a body designed to toughen enforcement of employment rights and ensure fair treatment for UK workers.
Set to launch in April 2026, the new agency will bring together the responsibilities of three existing enforcement bodies into a single organisation, ending what ministers called a “fragmented” system of labour market oversight.
The Department for Business and Trade said the agency will have robust powers to inspect workplaces, impose civil penalties for underpayments, and bring legal proceedings on behalf of workers. It will also provide compliance support for employers, aiming to create “a level playing field” for those already adhering to the law.
Business Secretary Peter Kyle described the move as “a game-changer” for employment rights enforcement.
“The current enforcement system doesn’t deliver for businesses or working people,” Kyle said. “Our Fair Work Agency will be a game-changer in ensuring rights are properly enforced, whilst backing those businesses that already do the right thing.”
Taylor, currently chief executive of the NHS Confederation, will continue in that role until the agency’s formal launch. A high-profile public figure, Taylor has spent more than two decades shaping public policy and driving reforms across government, business and civil society.
He previously served as chief adviser on political strategy to prime minister Tony Blair, and led the Institute for Public Policy Research (IPPR) for four years. Before joining the NHS Confederation in 2021, he spent 15 years as chief executive of the RSA (Royal Society of Arts), transforming it into a global institution with 30,000 fellows and an influential research programme.
His 2016 review of modern working practices, commissioned by the Conservative government, laid the groundwork for many of the reforms now being advanced under the Employment Rights Bill. His work on this review led to him being recognised in the 2019 Birthday Honours list, being appointed a CBE.
“It is an honour to be asked to be the first chair of the Fair Work Agency,” Taylor said. “The Agency has a vital job in strengthening labour market compliance and enforcement. This is essential to provide workers with protection and employers with a supportive and level playing field on which to invest and grow.”
The government said the reforms would benefit more than 15 million UK workers as part of its wider ‘Make Work Pay’ and ‘Plan for Change’ initiatives. It follows research suggesting that around 900,000 workers have holiday pay withheld each year, with nearly one in five minimum wage workers underpaid.
Employment Rights Minister Kate Dearden said the agency would have “the teeth to take action against businesses that flout the rules”.
“This is about creating workplaces where people are treated with dignity and respect. It’s exactly the kind of backing working people in this country deserve,” Dearden said.
The announcement has drawn broad support from across business and labour groups. TUC general secretary Paul Nowak called the agency “a vital opportunity to turn the page on the era of inadequate enforcement”, while Recruitment and Employment Confederation chief executive Neil Carberry said the move could help prevent rogue employers from undercutting compliant firms.
Peter Cheese, chief executive of the CIPD, the professional body for HR and people development, welcomed the appointment, adding that smaller businesses would need clear guidance to meet the new standards.
“To ensure its success, the Fair Work Agency must be equipped with the right resources and a strong employer-side voice from the outset,” Cheese noted. “Employers - particularly smaller businesses - need clear guidance and support to comply with the new Employment Rights Bill.”