The Fair Work Agency (FWA) officially launched on 7 April 2026. It brings together several existing enforcement bodies under one roof. Its arrival has raised concern among HR teams about increased inspections, tougher penalties and greater scrutiny.
But remember: the FWA does not create new employment rights, it changes how existing rights are enforced.
What’s changing?
The FWA consolidates enforcement powers previously spread across several bodies, including HMRC’s National Minimum Wage unit, the Gangmasters and Labour Abuse Authority and the Employment Agency Standards Inspectorate.
Its remit includes:
- National Minimum Wage enforcement
- agency worker regulation
- modern slavery enforcement
- unpaid tribunal awards
From 2027, it’s expected to take on enforcement of:
- Statutory Sick Pay
- annual leave and holiday pay
Why you should pay attention
For many employers, it is the likelihood of more coordinated and proactive enforcement. In the past, many breaches only came to light after an employee brought a tribunal claim.
The FWA is intended to work differently. It has investigatory powers, the ability to conduct inspections and the power to request extensive employment records.
Complaints from workers, poor record-keeping, or inconsistent practices could all attract attention.
Why the transitional year is an opportunity
The Government says 2026–27 will be a transitional period while the FWA becomes fully operational.
This will buy employers some breathing space – and it also creates an opportunity. HR teams can use this period to identify weak spots before enforcement activity ramps up.
5 focus areas
You should revisit these core compliance areas:
- payroll practices
- holiday pay calculations
- SSP processes
- worker status
- record retention
Those relying on outdated processes, inconsistent practices or incomplete records are the employers most likely to struggle under the new regime, even though they may not be acting deliberately unlawfully.
Further reading
- Fair Work Agency employer compliance – Hunter Law
- Fair Work Agency begins to take shape – Hunter Law
- Fair Work Agency – business.gov.uk
- About the Fair Work Agency – Gov.uk
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