Launch of the Fair Work Agency: a new era for enforcing employment rights?

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7 April 2026

Authors: Nick Marshall, Hayley Tennant, Avani Agarwal, Kloe Halls

Today (7 April 2026), the Fair Work Agency formally launches, marking the start of a shift in how employment rights are enforced in Great Britain (as well as certain areas of enforcement in Northern Ireland).

Positioned as a single, recognisable brand for workers seeking guidance and support, the FWA is the government’s proposed solution to what it sees as the current inefficient, fragmented system for enforcing employment rights.

Over time, the FWA will centralise functions currently spread across different bodies (for example, the enforcement of national minimum wage, protecting agency workers, and addressing labour exploitation) as well as taking on responsibility for enforcing other employment rights like statutory sick pay and statutory holiday pay.

The FWA’s role and powers

The FWA will provide guidance to both workers and employers, while also wielding wide-ranging investigatory and enforcement powers. These include the ability to:

Obtain and inspect documents;
Enter business premises without a warrant to inspect records, access IT systems and seize documents;
Retain copies of documents for use in investigations and as evidence;
Issue notices of underpayment where employers fail to make payments required by law, such as statutory sick pay and holiday pay. This will also attract a penalty, requiring employers in most cases to pay 200% of the amount owed to the individual to the FWA;
Seek labour market enforcement undertakings requiring employers to commit to correcting non-compliant practices and, if necessary, court orders;
Bring Employment Tribunal claims on behalf of workers who have a right to claim but choose not to; and
Provide legal advice and representation in employment-related civil proceedings.

Some of these powers represent a significant change from the current position, in particular, the ability for the FWA to step into a worker’s shoes and bring Employment Tribunal proceedings on their behalf. In practice, however, this is expected to happen only where the worker agrees and engages with the process, other than in the most serious cases of exploitation or intimidation.

Other aspects of the FWA’s toolkit will feel more familiar to some employers. Its investigatory powers resemble those already exercised by regulators like the Competition and Markets Authority and the FCA, including unannounced “dawn raid” style inspections at business premises. Although employers with experience of these regimes can leverage any existing resources they have for handling any issues raised by the FWA, they should take advice on how the FWA’s regime is different.

Failing to comply with the FWA’s exercise of these powers attracts significant penalties, including criminal offences and fines.

While on paper the FWA therefore has considerable “teeth”, its chair, Matthew Taylor, has indicated that these powers will be used “sparingly” and subject to a relatively high threshold, with its priority instead on encouraging and supporting compliance by employers.

Timing

Although the FWA has now come into existence, it will take several years to become fully functional, with a transitional period as responsibilities transfer from existing bodies. However, its powers to look back six years mean historic compliance issues continue to be relevant and may still be scrutinised.

Preparing for the new enforcement landscape

There are a number of practical ways employers should prepare:

Audit pay and key entitlements: while the rights being enforced are not new, employers may wish to review national minimum wage, holiday pay and statutory sick pay practices, and ensure policies clearly explain how pay is calculated.
Tighten record keeping: ensure accurate, comprehensive records are kept for at least six years and can be produced quickly in a legible format in case of an information request or inspection by the FWA.
Prepare for the possibility of inspections: put in place protocols on handling visits and information requests, and identify who will deal with FWA officers and co-ordinate the response.
Train front-line and senior staff: train HR, reception, security, managers and senior leaders on how to respond to contact or visits from the FWA, and when/how to involve legal advisers.

Find out more in our podcast, download our factsheet or get in touch.

Launch of the Fair Work Agency: a new era for enforcing employment rights?

The FWA’s role and powers

Timing

Preparing for the new enforcement landscape

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Launch of the Fair Work Agency: a new era for enforcing employment rights?

​

The FWA’s role and powers

Timing

Preparing for the new enforcement landscape