Fair Work Agency: What do you need to know as an employer?

The Fair Work Agency (FWA) was introduced under the Employment Rights Act 2025. From April 2026, the new UK executive agency brought together a host of entities into a single enforcement agency.

These previous entities included the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate, HMRC’s National Minimum Wage team, and the Office of the Director of Labour Market Enforcement.

The FWA’s initial functions include protecting workers’ rights, ensuring compliance with employment law and agency standards, and ensuring fair competition. These functions either have already been and/or will be further expanded to include the following:

• Supporting or even bringing tribunal proceedings on behalf of workers.
• Enforcing rights around the National Minimum Wage (NMW), Statutory Sick Pay (SSP) and holiday pay.
• Maintaining the regulation of umbrella companies.
• Investigating breaches of employment law and labour exploitation.
• Recovering costs owed to workers and introducing financial penalties to employers who fail to comply.
• Requiring employers to attend meetings and provide specific information or documentation.
• Accessing business premises to carry out inspections and gather evidence of non-compliance.

The FWA can provide advice and guidance to employees and employers. However, they also have the power to enforce through warning letters or prohibition notices, naming and shaming, and even civil proceedings or criminal investigations.

Employers should therefore look to ensure continued compliance throughout their organisation by keeping on top of policies and procedures, ensuring up-to-date and accurate records, and carrying out regular audits and reviews.

Because the Fair Work Agency can inspect your premises and request your records, your paperwork and policies need to hold up to scrutiny. Contact Solutions for HR to review them before the FWA does.