The Fair Work Agency

As part of the wider implementation of employment law updates in the UK, The Fair Work Agency (FWA) began operating on 7 April 2026, bringing enforcement of several key employment rights together under one body. 

The agency is part of a wider effort to tackle workplace exploitation and strengthen employment rights across the country.   

What is the Fair Work Agency?

The FWA brings together functions previously carried out by bodies including: 

• Employment Agency Standards Inspectorate 

• Gangmasters and Labour Abuse Authority 

• Office of the Director of Labour Market Enforcement 

By bringing UK employment-rights enforcement into one central body, the FWA helps eliminate procedures that have historically been slow, drawn-out, and unnecessarily complex. 

The powers of the Fair Work Agency

The Fair Work Agency has a strong set of enforcement powers, related to employment rights and beyond.

Investigate businesses and gather evidence 

The Fair Work Agency (FWA) has power to investigate businesses where it suspects employment laws aren’t being followed. And it doesn’t always need to wait for a worker to make a complaint before acting. 

As part of an investigation, FWA enforcement officers can visit business premises, speak to workers and employers, and inspect records. They can also require you to provide specific information or documents for evidence gathering. 

So, it’s important to keep accurate employment records and make sure they’re readily available if requested. This includes your employment contracts, payroll, and working time records.  

Issue notices and financial penalties 

If the FWA finds that certain employment rights have been breached, it has a range of enforcement options available. 

For example, Notices of Underpayment can be issued for National Minimum Wage (NMW) and National Living Wage (NLW) breaches. These can require an employer to repay money owed to workers and pay a financial penalty. 

For NMW and NLW underpayments, penalties can be up to 200% of the amount owed, subject to a maximum of £20,000 per worker. 

The FWA can also take enforcement action in other areas within its remit, depending on the type and seriousness of the breach. 

Its enforcement responsibilities are set to expand further, including into areas such as statutory holiday pay and Statutory Sick Pay (SSP). 

Take legal and enforcement action 

The FWA has wider legal powers to help enforce employment rights. 

This includes powers relating to Employment Tribunal proceedings and providing legal assistance in certain employment and labour relations cases. 

Support businesses with compliance 

The FWA doesn't only exist to take action against employers. It is also a useful resource. Providing business owners with essential information and guidance to help them understand their responsibilities and comply with employment law. 

For small businesses, the key takeaway is to make sure your employment practices are compliant and that you keep accurate records to demonstrate this if your business is investigated. 

With the FWA able to investigate potential breaches proactively, employers shouldn’t assume that enforcement action will only happen after a worker makes a complaint. 

Need help with that? We’ve got a 24/7 employment law advice line and an HR document library with hundreds of  customisable HR compliant documents you can use. 

What employment rights will the Fair Work Agency enforce in future? 

As the operational capabilities of the FWA expand, the agency will gain additional powers in the near future. These new powers include:  

• Holiday pay enforcement  

• National minimum wage enforcement  

• Increased integration and enforcement tools 

In April 2027, the FWA is also expected to publish their first Statutory Enforcement Strategy. This will outline their plans as their remit for enforcement is expanded.  

How employers can comply with the FWA 

The Fair Work Agency is now responsible for enforcing several important workplace rights. But for employers, this doesn’t necessarily mean introducing completely new ways of working. 

Instead, it makes good everyday HR practices even more important. Keeping accurate records, paying workers correctly, and regularly reviewing your policies can help you stay compliant and respond confidently if the FWA ever contacts your business. 

Here are some practical steps you can take: 

Keep accurate pay and working time records 

Check that your workers are receiving at least the correct National Minimum Wage or National Living Wage rate and keep accurate records of their pay and working hours. 

Remember, minimum wage compliance isn’t only about an employee’s hourly rate. Working time and certain deductions or payments can affect whether a worker has received the correct minimum wage. 

Keep your holiday records up to date 

Make sure you accurately record holiday entitlement, leave taken, and holiday pay. 

This is particularly important as the FWA’s enforcement responsibilities are set to expand to include statutory holiday pay. 

Keep employment documents organised 

The FWA has powers to request information and documents as part of an investigation. So, make sure your employment records are accurate, up to date, and easy to access. 

Regularly review your HR policies 

Employment law changes regularly, so your policies and procedures shouldn’t be something you write once and forget about. 

Review them regularly and make sure your managers understand the processes they need to follow.  

Act on employee concerns 

If a worker raises concern about their pay or employment rights, take it seriously. Look into the issue, keep a record of the steps you’ve taken, and take appropriate action where necessary. 

Doing this can help you identify potential compliance problems early and maintain good employment practices. 

Get advice if you’re unsure 

You don’t need to be an employment law expert to run a small business. But you do need to understand and meet your responsibilities as an employer. 

If you’re unsure about a particular issue, getting advice can help you understand what the law requires and what steps you should take. 

Whether you’re looking to prevent compliance issues or just want peace of mind, BrightHR gives you the tools and support to stay one step ahead:  

• HR document templates to keep your policies and contracts legally sound  

• Employee records stored securely and accessibly with unlimited cloud storage  

• HR software that tracks holidays, working hours, and shift patterns  

• Expert employment law services, advice is available 24/7 through our BrightAdvice helpline  

• Compliance audits and alerts, so you can spot risks early  

And as enforcement becomes more proactive, having the right support in place could save you time, stress, and money down the line.  

The bottom line? If you’re already doing things fairly and transparently, you don’t need to worry. But with the introduction of the FWA it’s important to get your HR processes in shape, and BrightHR is here to help you do just that.