Five wooden cubes in a row, finger pointing to the middle one which shows scales of justice. The other four show a profile of a person
Fair Work Agency: what employers need to know

The Fair Work Agency (FWA) has published its Delivery Plan for 2026-27, setting out how it will bring together key labour market enforcement functions into a single UK-wide body.

The FWA’s role is to help workers understand their rights, support employers to comply with the various requirements, and take enforcement action where workers are exploited or businesses gain an unfair advantage by ignoring the rules.

As the FWA was launched on 7 April 2026, 2026/27 is the first year that it has been able to make a difference.

What is changing?

For employers, the biggest change is the move towards a single point of contact for employment rights issues. Instead of different bodies covering different areas, the FWA is intended to create a simpler system for businesses seeking help and a stronger response to serious breaches of employment law.

The agency says it wants to work more closely with employers, trade bodies and advisers, giving businesses clearer routes to get help when they need to understand or check their employment rights obligations.

More targeted enforcement

The plan also places strong emphasis on intelligence and data. The FWA intends to combine information from different sources, work with partners and focus attention on sectors where workers may be at greater risk of exploitation, including social care and construction.

Support for responsible employers

A key part of the FWA’s role is helping businesses comply with their employment law obligations. The delivery plan promises clearer guidance, simpler routes to advice and closer working with organisations such as Acas (the Advisory, Conciliation and Arbitration Service). This should be useful for small employers that may not have dedicated HR or legal teams.

The aim is to make it easier for businesses to get things right and to reduce unfair competition from employers who cut costs by ignoring employment law. In practice, reliable payroll processes, clear contracts, accurate records and prompt action on worker concerns will remain important.

What employers should do now

The plan makes clear that enforcement remains central to the FWA’s work. The agency will continue activity in areas such as National Minimum Wage (NMW) and National Living Wage (NLW) enforcement and prepare for wider responsibilities over time. Employers should therefore treat this first year as a good opportunity to check that their everyday employment practices are in order.

Useful steps include:

  • reviewing pay rates and deductions for NMW and NLW compliance (see our previous Back to Basics articles on NMW/NLW;
  • checking worker status;
  • keeping working time and holiday records up to date;
  • making sure managers and payroll teams know where to find guidance; and
  • taking early corrective action where problems are identified.

For most compliant small businesses, the immediate impact of the FWA’s delivery plan should be minimal. The practical message is to stay informed, use the support available and keep good employment records. The FWA’s aim is to support employers who want to comply, while making it harder for poor or illegal practices to go unchecked.

 

This article reflects the position at the date of publication shown above. If you are reading this at a later date you are advised to check that that position has not changed in the time since.   

We regularly publish articles on a range of tax and wider topical issues which affect employers. If you wish to subscribe to our monthly Employer Focus e-newsletter, please contact us.