Fair Work Agency Launches in April 2026

The Fair Work Agency (FWA) will be established on 7 April 2026. Its role will be to enforce employment law in areas covered by existing agencies, including modern slavery, gangmasters licensing, operation of agencies and employment businesses, sick pay, and minimum wage. It will also gain new powers to enforce holiday pay.

The FWA will have extensive powers to enforce statutory payments, impose penalties, and recover its enforcement costs. Specifically:

• The FWA will have the power to inspect workplaces and to require employers to produce relevant documents and evidence demonstrating compliance with employment law.
• A civil penalty regime will allow enforcement officers to issue notices of underpayment (going back up to six years) to employers for any non-payment or incorrect payment of any statutory payment (e.g., SSP, holiday pay, or NMW), requiring that they pay the amount due within 28 days. Notices of underpayment must include a penalty of 200% (up to a maximum of £20,000 per individual and a minimum of £100) which may be discounted by 50% if the sums due are paid within 14 days of the notice.
• Where a worker has a right to bring a claim in the Employment Tribunal, the FWA will be able to bring those proceedings in place of the worker, as well as give legal advice or provide representation in employment, trade union, or labour relations cases.
• The FWA will be able to recover enforcement costs from employers not complying with the law. This may include the costs associated with providing legal representation to workers.

To prepare for the FWA, employers should check the accuracy of their calculations in respect of statutory payments and keep them under review and retain adequate records to demonstrate compliance with holiday pay and leave for six years.