The agency will aim to transform labour market enforcement, protecting workers from bad employers who flout minimum wage and other labour laws, levelling the playing field for businesses that pay fairly.

It will bring together the responsibilities of three existing enforcement bodies to create a single agency, ending the current fragmented system so that workers and employers know where to turn to for support.

Taylor led the influential Taylor Review of Modern Working Practices in 2016, which provided the foundation for many of the transformative reforms now being delivered through the Employment Rights Bill.

Since 2021 he has also served as chief executive the NHS Confederation, following a stint at the RSA and an interim period as director of Labour Market Enforcement.

Business secretary, Peter Kyle, said: ‘The current enforcement system doesn't deliver for businesses or working people. 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.

‘Matthew brings exceptional leadership experience to this pivotal role and I look forward to working with him to deliver our Plan to Make Work Pay and put more money into the pockets of workers across the country.'

Employment rights minister, Kate Dearden, added: ‘Matthew Taylor's extensive experience will be vital in ensuring this new agency delivers real change for people who've been let down by poor employment practices for far too long. 

‘Our Fair Work Agency will make a real difference, providing a single point of contact for workers and employers, and crucially, having 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.

Taylor said: ‘For years inside and outside Government I argued that employers and workers need a single enforcement body for employment rights. It is an honour to be asked to be the first chair of the Fair Work Agency, the body that will meet that need. 

‘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.'

Taylor will take up the role from April 2026.