The Fair Work Agency

The UK Government has plans to launch 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 proposal is part of a wider effort to tackle workplace exploitation and strengthen employment rights across the country. And the first phases to implement it is set out in  the Employment Rights Bill,  which is currently being considered by the House of Lords.

So, what exactly is it and how might it impact your business? Let’s break it down.

What is the Fair Work Agency?

The proposed 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.

Right now, enforcement is 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

The FWA would bring these powers together under one roof—making enforcement more coordinated and, potentially, more effective.

By bringing these under one roof, the agency would create 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 is this happening?

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.

What powers will the FWA have?

While the finer details are still being worked out, 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.

Here’s what that might look like in practice:

Investigations without a complaint

The agency would be 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 would 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 could 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 would be able to 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’s the time to 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.

When will the FWA come into power?

The Employment Rights Bill marks the initial step in rolling out the FWA, which is anticipated to gain Royal Assent and become law this summer, with certain proposals potentially starting as soon as October.

However, there is currently a lack of specific timelines for when each proposal will be implemented.

The Government has indicated that they will gradually introduce the FWA in the coming years, with the Secretary of State having the authority to modify and broaden its scope.

What could this 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 proposed changes could 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.

What you should do now as an employer?

Even though the Employment Rights Bill is awaiting Royal Assent, it’s a strong signal that enforcement of workplace rights is 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 prepare your business for the FWA

The Fair Work Agency proposal marks a big shift in how workplace rights could be enforced in the UK. While it’s still working its way through Parliament, the direction of travel is clear: 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 if enforcement becomes more proactive (as this bill suggests) 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 changes on the horizon, there’s never been a better time to get your HR processes in shape and BrightHR is here to help you do just that.