The Fair Work Agency begins operating

17 June 2026 | Mrge_Acontants

The Fair Work Agency (FWA), which was created under the Employment Rights Act 2025, is a government body which aims to both strengthen and simplify the way workers’ rights are enforced across the UK.

The FWA brings together various enforcement functions that used to sit under several separate bodies before it began its work on April 7, 2026. Its remit covers the enforcement of employment agency standards, pay-related rights including national minimum wage and national living wage. It also enforces requirements for a gangmaster’s licence and conditions for licences, and protections against serious labour exploitation, according to Gov.uk.

FWA’s enforcement authority extends across several key pieces of legislation:

• The Employment Agencies Act 1973
• Employment Tribunals Act 1996
• National Minimum Wage Act 1998
• Gangmasters (Licensing) Act 2004
• Fraud Act 2006
• Modern Slavery Act 2015
• Employment Rights Act 2025

Source: Gov.uk

What does this mean for employees?

Employees should find it easier to understand and enforce their workplace rights. Prior to the FWA, responsibility for the different aspects of employment law was spread across multiple bodies, including HMRC for National Minimum Wage enforcement, and the Gangmasters and Labour Abuse Authority for labour exploitation issues.

Over time, the expectation is that the FWA will expand its remit into areas such as holiday pay and Statutory Sick Pay enforcement. But even now, workers can have greater confidence that complaints about employment law breaches will actually be investigated.

The FWA also has powers to inspect businesses, investigate breaches, pursue employers who fail to comply fully with employment law, and to issue civil penalties. For employees who feel unable to take legal action against their employer themselves, the FWA may even support tribunal claims.

What does this mean for employers?

Employers who are already doing everything they should to protect their employees and work within the law have little to worry about. But any employer that isn’t doing everything right, or is perhaps cutting corners when it comes to employment law, needs to change their approach.

Businesses may face more inspections, be expected to keep better and more detailed records, and face larger penalties for breaches. The change will bring in more active enforcement, moving away from what has been a largely complaint-led system in the past.

The Gov.uk site states: “Where non-compliance is identified, FWA may take a range of enforcement actions depending on the nature and seriousness of the breach. It will also determine the most effective enforcement tools to address and prevent offending behaviour, ensuring that responses are proportionate and likely to prevent recurrence. These may include:

• Advice and guidance to secure compliance.
• Warning letters.
• Notices of underpayment and civil penalties.
• Naming employers for underpaying the minimum wage.
• Labour market enforcement undertakings or orders.
• Licensing action, including refusal, modification, suspension or revocation.
• Prohibition notice orders.
• Civil proceedings.
• Criminal investigation and prosecutions, where appropriate.”

Source: Gov.uk

We can help you meet your obligations

If you would like to know if your business is complying with employment law, or you simply need information on how the FWA might change what you need to do, then please get in touch and we would be happy to give you the guidance you need.