On 7 April 2026, the new Fair Work Agency (FWA) will be launched, which will start the process of bringing together the enforcement of key employment rights into a single body. 

The agency is being created as part of a package of new employment rights which became law last year. It is intended to be a single point of contact for both employees and employers, with powers to fine employers who fail to comply with their legal obligations. 

The new agency will be part of the Department of Business and Trade (DBT) and will be chaired by Matthew Taylor. Initially it will take on the functions of HMRC’s National Minimum Wage Unit, the Gangmaster and Labour Abuse Authority, the Director of Labour Market Enforcement and the Employment Agency Standards Inspectorate. Further areas of responsibility will be added in future phases. 

The impact for employers 

The agency will not create any new legal obligations, but will help to support businesses to follow existing law by providing guidance and advice. The agency will penalise those employers who do not comply with their legal obligations. 

The agency will have powers to: 

• inspect workplaces and require employers to provide evidence they are complying with employment law.
• impose civil penalties where workers are found to have been underpaid. 
• bring proceedings in the employment tribunal on a worker’s behalf. 
• impose charges to recover enforcement costs from employers where action has been taken for non-compliance.

Penalties can also include public ‘naming and shaming’ of employers who have broken the rules which may bring negative publicity and reputational damage.

At Budget 2025, the Government committed to eliminating the backlog of employment rights cases built up under previous administrations. In future, the agency will ensure all employers who break the law will be named within a year of their case closing.

The agency will also work closely with trade unions and local business groups, to gather information about employers believed to be exploiting their workers. 

Implementation

The scope of areas covered by the agency will be increased over time. It will start with enforcing:

• Minimum wage regulations 
• Domestic agency rules
• Licensing statements for gangmasters
• Certain elements of the Modern Slavery Act 2015.

In due course, it will take over enforcement of holiday pay and statutory sick pay.

The impact for workers and employees… 

Currently, a worker who wants to enforce their employment rights must complain to an employment tribunal. This can be daunting and involve costs, meaning that many workers miss out on their basic entitlements. Research suggests that more than 1 in 10 lower paid workers don’t receive holiday pay and around 19.4% - nearly one in five - of the lowest paid individuals don’t receive the minimum wage. 

Following the creation of the new agency, workers will be able to report bad behaviour by their employer to the FWA, which will have strong powers to inspect workplaces and take action against employers who are deliberately breaking the law. The agency will also be able to take cases on behalf of workers. 

Trade unions will have representation on the agency advisory board, ensuring workers' voices are heard in how the agency operates.

Further reading 

The Fair Work Agency factsheet sets out some of the detail behind the new agency. There is also information for employees on how to get support from the Fair Work Agency after it commences in April 2026. 

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.   

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