Andy Burnham has been called upon to strengthen enforcement against gig economy firms to safeguard the rights of four million workers. This warning comes as the Labour Party-led government faces pressure highlighted in a joint report by the Fabian Society and the Joseph Rowntree Foundation.
The report reveals that millions of workers are currently excluded from crucial statutory rights, including parental leave, redundancy pay, and protection against unfair dismissal. These gaps in protections chiefly affect those classified under so-called “bogus self-employment” arrangements prevalent within the gig economy.
To address these issues, the report urges the government’s Fair Work Agency (FWA) to intensify its oversight and clamp down on exploitative employment practices. Established under the Employment Rights Act 2025, the FWA commenced operations on 7 April 2026, consolidating enforcement functions previously managed by HMRC, the Employment Agency Standards Inspectorate (EASI), and the Gangmasters and Labour Abuse Authority (GLAA).
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The FWA possesses wide-ranging powers, including conducting workplace inspections, demanding employment records, issuing Notices of Underpayment with penalties reaching up to 200% of owed amounts, and initiating tribunal claims on behalf of workers.
Luke Raikes, deputy general secretary of the Fabian Society, emphasised the importance of compliance, stating: “The government must ensure that those who bypass employment law cannot undercut the majority of employers who abide by the rules. If an employment relationship exists, workers should be treated as employees by default, with enforcement action taken against non-compliant employers. Insecure workers should not be forced to enter prolonged legal battles simply to claim their basic rights.”
A government spokesperson responded: “Our plan to make work pay aims to enhance job security, promote sustainable employment, and improve living standards. The Fair Work Agency is already assisting workers in securing the rights they deserve. We have committed to consulting on employment status and will consider how the FWA can further utilise its civil proceedings powers in this regard.”