From April 2026, one of the biggest changes to employment rights enforcement in recent years came into force with the launch of the Fair Work Agency (FWA). The FWA was officially launched on 7 April 2026 and now acts as a central enforcement body for a range of employment rights across Great Britain.
For many businesses, the good news is that if you're already following employment law and maintaining good records, the impact should be minimal. However, the FWA has significant powers to investigate non-compliance, issue penalties and enforce workers' rights, making it more important than ever to ensure your HR processes are robust.
What Is the Fair Work Agency?
The Fair Work Agency was established under the Employment Rights Act 2025 and brings together several existing enforcement functions into one organisation. Its purpose is to make it easier for workers to report concerns and simpler for businesses to access guidance and support.
The agency currently oversees areas including:
National Minimum Wage and National Living Wage compliance
Agency worker protections
Labour exploitation and modern slavery enforcement
Gangmaster licensing requirements
Its remit is expected to expand over time to include additional employment rights, including holiday pay enforcement and related record-keeping requirements.
Why Should Employers Pay Attention?
Historically, many employment rights relied on employees bringing claims themselves. The Fair Work Agency changes that approach.
The agency now has powers to:
Investigate employers proactively
Request documents and records
Enter and inspect workplaces
Require repayment of underpaid wages
Issue civil penalties where breaches are identified
The focus is expected to be supportive and aimed at helping employers comply. However, businesses that fail to meet their obligations could face increased scrutiny and enforcement action.
Five Practical Steps to Stay Compliant
1. Review Your Employment Contracts and Policies
Many employers have not updated their contracts or handbooks to reflect changes introduced throughout 2025 and 2026.
Check that you have up-to-date policies covering:
• Holiday entitlement and holiday pay
• Sickness absence
• Flexible working
• Family-friendly rights
• Whistleblowing
• Disciplinary and grievance procedures
Outdated policies can create compliance risks and make defending employment claims more difficult.
2. Audit Your Pay Practices
Minimum wage breaches are often accidental rather than deliberate.
Common issues include:
• Salary deduction errors
• Uniform deductions
• Unpaid working time
• Incorrect apprentice rates
• Failure to pay for mandatory training time
Conducting a payroll audit can help identify any issues before an inspector does. Remember, the cost of correcting an error voluntarily is often far lower than the cost of an investigation.
3. Strengthen Your Record Keeping
If the Fair Work Agency investigates your organisation, one of the first things it may request is evidence.
Make sure you can easily access:
• Working time records
• Payroll information
• Holiday records
• Right to work checks
• Contracts of employment
• Absence records
• Agency worker documentation
Good records demonstrate compliance and can significantly reduce the time and disruption caused by an investigation. Employers are specifically encouraged to review their record-keeping processes as part of preparing for the new regime. We are Breathe HR partners and advocte HR Software for all size businesses to keep you compliant and all employee data in one place.
4. Train Your Managers
Many employment law issues arise because line managers do not fully understand their responsibilities.
Provide regular training on:
• Managing absence
• Conducting investigations
• Handling grievances
• Flexible working requests
• Equality and discrimination
• Whistleblowing concerns
Well-trained managers are often the first line of defence against employment disputes and regulatory concerns.
5. Take Employee Concerns Seriously
The Fair Work Agency is designed to make it easier for workers to raise concerns about workplace rights.
Businesses should:
• Encourage employees to speak up
• Have clear whistleblowing procedures
• Investigate concerns promptly
• Keep written records of actions taken
• Avoid retaliatory treatment towards employees who raise concerns
Creating a culture where concerns are addressed early can prevent issues escalating into formal complaints or external investigations.
Ask yourself:
✅ Are employment contracts up to date?
✅ Is your staff handbook legally compliant?
✅ Can you evidence holiday and pay calculations?
✅ Are managers trained in key employment law responsibilities?
✅ Do you maintain accurate employee records?
✅ Do employees know how to raise concerns?
✅ Have you reviewed minimum wage compliance in the last 12 months?
If you answered "no" to any of these questions, now is a good time to take action.
Final thoughts
The Fair Work Agency should not be viewed as something to fear. For responsible employers, it is another reminder of the importance of getting the basics right. Good documentation, accurate records, fair treatment of employees and proactive HR management remain the best protection against enforcement action.
Employers who invest time in reviewing their compliance today are likely to find themselves in a much stronger position if the Fair Work Agency ever comes knocking.
Need help reviewing your contracts, employee handbook or HR processes? A proactive HR audit today could save significant time, cost and disruption tomorrow.
Telephone: 0330 0436 707 or email flex@fig-hr.com for further support or guidance
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