First published on Tuesday, June 2, 2026
Last updated on Friday, May 29, 2026
According to Government research, 1 in 7 UK workers has experienced a breach of employment law in the last two years. That’s at least 5.4 million workers who’ve had a breach of national minimum wage, payslips, contracts and other key documents, or work-finding fees.
Who is the Fair Work Agency?
The Fair Work Agency was formed on 7th April 2026, to monitor and enforce employment rights.
The Fair Work Agency will look at breaches of employment rights, including:
Statutory Sick Pay (SSP), holiday pay, or minimum wage breaches
Not receiving a contract or key information document before starting the job
Agency workers being charged work-finding fees
Exploitation of workers including modern slavery
Not receiving a payslip
What will the Fair Work Agency do?
The Fair Work Agency will have the power to undertake scheduled or spot checks on UK businesses and take direct enforcement action. So, even without a complaint or grievance against your business, you can receive a visit.
Your policies, documents, and procedures will all need to hold up at short notice. You’ll need evidence of your pay calculations, and documentation that proves you’re compliant with employment law. That includes up-to-date handbooks and contracts.
The agency will be able to investigate breaches that occurred up to six years ago. So, you’ll need to make sure your record keeping is up to scratch and old documents are accurate and easily available. If you don’t store them digitally, now’s the time to start.
What does this mean for employers?
Getting Fair Work Agency-ready isn’t just about avoiding fines. Being named and shamed can cause reputational damage, disruption, and wasted time.
And the burden of proof now lies with the employer. You will have to produce accurate and up to date documentation for the last six years to prove you haven’t breached employment laws. From handbooks to contracts, payslips and annual leave calculations, it all has to be up to date, all the time.
Because you’ll need such a huge amount of information to hand, manual filing systems are now a liability. An HR software will provide audit-ready information in a few clicks. You can create an audit-ready pack for each employee and give yourself peace of mind in case of inspection. And compared to a criminal offence and unlimited fines for not having the right records, the cost of software is negligible.
How BrightHR can help
Accurate, up-to date contracts and employee records, so you’re inspection-ready.
Integrated HR and payroll software, with less room for error in pay calculations.
Easily accessible documentation, so no last-minute rush to gather information if you’re inspected.
Up-to-date templates, so you can get your handbooks, policies, and documentation up to date.
24/7, UK-based employment law experts, so you can stay compliant as the rules evolve.
Want to keep this information to hand? Download your BrightHR Fair Work Agency checklist here.
