Party’s deputy leader says Fair Work Agency will have the power to inspect workplaces and levy fines

Labour will create a watchdog with “real teeth” that has the power to prosecute and fine companies that breach the rights of their employees as part of its plans to strengthen workers’ rights.

Angela Rayner, the party’s deputy leader, told the Observer that she would create a new body, the Fair Work Agency, to oversee her proposals. She said that millions of workers could be losing out on basic rights as a result of underenforcement.