Employment Rights Bill – What is the Fair Work Agency?

The Employment Rights Bill is set to bring major changes to employment law — but one of its most striking developments has gone largely unnoticed.

Last week’s Amendment Paper revealed that the new Fair Work Agency will now have unprecedented powers, including:

• The ability to bring Employment Tribunal claims on behalf of workers — even if they don’t want to claim themselves.

• The power to offer legal assistance for employment cases, with the Fair Work Agency's costs recoverable from employers if the claim succeeds.

• The authority to pursue employers for unpaid holiday pay and sick pay and impose financial penalties on top which go straight to the government

These amendments to the Bill could fundamentally reshape employment litigation. Employers who previously relied on employee reluctance to claim may now find the Fair Work Agency stepping in instead.

This is just the beginning. These amendments are likely to pass into law—but how they will work in practice remains uncertain.