Lucy Cobb
Thursday, May 22, 2025
Gemma O'Connor
Friday, April 10, 2026
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As part of the wider implementation of employment law updates in the UK, the Government have now launched a single entity that will oversee the enforcement of employment rights, named the Fair Work Agency (FWA). And if you’re an employer, it’s worth paying attention.
The agency is part of a wider effort to tackle workplace exploitation and strengthen employment rights across the country.
So, what exactly is it and how might it impact your business? Let’s break it down.
What is the Fair Work Agency?
The FWA is being billed as a single enforcement body for workplace rights.
Its aim? To streamline how employment laws are enforced and to work with and support employers in complying with the law, resolving issues.
Previously, enforcement was spread across different organisations:
His Majesty's Revenue and Customs (HMRC) handles minimum wage breaches
The Gangmasters and Labour Abuse Authority (GLAA) focuses on labour exploitation
The Employment Agency Standards Inspectorate oversees employment agencies
Employment Tribunals deal with disputes made by employees related to their employment
Making enforcement often complicated and long-winded.
The Fair Work Agency brings these powers together under one roof—making enforcement more coordinated and, potentially, more effective.
By bringing these under one agency, the FWA becomes a central point of contact for issues related to:
Underpayment of wages
Unlawful deductions from pay
Holiday pay disputes
Exploitation of vulnerable workers
Non-compliance by employment agencies and umbrella companies
Forced labour and modern slavery in the workplace
Why has this happened?
The government wants to crack down on rogue employers, improve compliance, and ensure vulnerable workers don’t fall through the cracks.
It’s also a response to long-standing calls from trade unions, legal experts, and parliamentary committees who’ve pointed out that fragmented enforcement simply isn’t working.
The powers of the Fair Work Agency from 7th April 2026
The Fair Work Agency is expected to be given a strong set of powers to enforce workplace rights more effectively. If you’re an employer, it’s worth getting familiar with what they might be able to do. Because this won’t just be about nudging businesses into line.
Now the FWA have been introudce, here’s what their powers will look like as they develop their processes over the next few months and years:
Investigations without a complaint
The agency is able to investigate workplaces proactively. Meaning they don’t have to wait for a worker to raise the alarm. Spot checks and inspections could become more common, particularly in sectors where exploitation is more likely.
Demanding evidence
You could be legally required to hand over documents or data to prove that your business is compliant with employment laws. Such as payslips, contracts, holiday records, or right-to-work paperwork.
The burden will be on you to prove compliance.
Issuing fines, notices and penalties
The agency is be able to issue Notices of Underpayment if employees haven't received their entitled statutory payments (like SSP or NMW/NLW). These notices will instruct employers to pay the owed amount within a specified timeframe, along with a penalty.
So, if you break the rules could face fines, potentially issued automatically.
Legal action without your worker being involved
This one’s a big change. The FWA can bring an employment tribunal claim on behalf of a worker, even if that individual doesn’t want to (or feel able to) take legal action themselves. The worker wouldn’t need to be actively involved, making it much easier for cases to be brought forward.
It’s also expected that the agency will be able to offer legal assistance, support, and representation to workers who do want to make a claim. That levels the playing field significantly and increases the risk for employers who aren’t compliant.
Recovering enforcement costs from employers
If action is taken against you and you’re found to be at fault, the agency can recover the cost of enforcement directly from your business. In other words, if they spend time and resources investigating and fixing the problem, you’ll likely foot the bill.
This new level of involvement means employers won’t just be dealing with reactive complaints—they could be approached or investigated proactively, with serious financial and reputational consequences if things aren’t up to scratch.
Now that the first phase of the Employment Rights Act 2025 has been implemented, you must make sure your processes and paperwork are watertight.
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 does the Fair Work Agency mean for your business?
If you’re already compliant and treating your staff fairly, this shouldn’t spell trouble. But the introduction of a new enforcement body means the bar is getting higher and the risks for getting it wrong are growing.
Here’s what the changes mean for your business:
More claims
With the Fair Work Agency able to bring claims on a worker’s behalf (even without their involvement), you could face legal action without ever hearing a complaint first.
And if the agency is also offering support and representation, we’re likely to see more cases going to tribunal overall.
More scrutiny
This won’t just be about responding to complaints. The agency could proactively inspect your workplace, demand evidence, and take enforcement action—all without anyone needing to raise a concern first.
That means ongoing compliance becomes even more important.
Being on the Government’s radar
If you’re found to be in breach of employment laws, you could be named publicly, fined, or required to pay the costs of enforcement. That kind of attention can be damaging to your brand and reputation—not to mention staff morale.
In short, the risks are real, but so are the opportunities to get ahead of the curve.
Your responsibilities as an employer
Now the Employment Rights Act 2025 is law, workplace rights are about to get stricter and more joined-up. So, now’s the perfect time to get your house in order and make sure your HR practices can stand up to scrutiny.
Here’s what you should focus on:
Follow good HR practices
Treating your people fairly isn’t just the right thing to do—it’s your legal responsibility. Make sure all employees and workers are being dealt with in a way that’s compliant with employment law and any relevant codes of practice.
That includes things like pay, working hours, time off, and fair treatment in the workplace.
Keep accurate records and documentation
If the Fair Work Agency comes knocking, you’ll need to show you’ve done everything by the book. That means having proper documentation in place.
From staff profiles to policies and procedures, contracts or statements of terms, pay records, holiday logs, and any formal communications. If you can’t prove it, it didn’t happen.
Stay on top of legal changes
Employment law is evolving, and fast. The introduction of this agency is just one of many recent proposals. Make sure you (or someone in your business) is keeping an eye on legal updates, so you’re not caught off guard when the rules change.
Get help from BrightHR to guarantee HR compliance
The Fair Work Agency marks a big shift in how workplace rights could be enforced in the UK. This requires greater accountability, stronger enforcement, and more protection for workers.
For employers, this is your cue to tighten up your processes, double-check your paperwork, and make sure everyone (from HR to line managers) is on the same page when it comes to employee rights and pay.
But you don’t have to tackle it alone.
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 HR legal advice, 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’re in a good place. But with big changes being implemented and more to come, now is the time to get your HR processes in shape and BrightHR is here to help you do just that.