The government is set to unveil plans for a new body aimed at coordinating investigations into rogue employers.

With an employment bill stipulating unlimited fines or heavy prison sentences for employers who fail to pay workers at least the minimum wage or who make illegal deductions from pay packets currently being passed through parliament, Whitehall officials are keen to bring together tax, health and safety and employment protection investigators into a single committee.

This would work alongside the Gangmasters Licensing Authority (GLA), for which the government is expected to reject calls from unions for greater powers and expansion into the construction industry, away from agriculture and food processing.

Plans have also been put forward for the establishment of new telephone hotlines, supported by a widespread marketing campaign, aimed at encouraging workers to speak out against abuses and report their bosses.

However, according to some workers' groups, the proposed powers will only go so far, with some arguing that the government has been held back to the business lobby.

Kevin Green, chief executive of the Recruitment and Employment Confederation, noted: "The reality is that rogue employers don’t obey the law anyway so introducing licensing will do nothing to stamp out exploitation and unfair treatment. An extension of the current licensing scheme would only serve to introduce unnecessary cost to good agencies that already play by the rules."