Employment Law Guide 2026: Fair work agency

The Fair Work Agency (FWA) is due to be established in April 2026. The FWA will be responsible for the enforcement of labour market legislation, including the National Minimum Wage, Statutory Sick Pay, holiday pay, the financial penalty for failing to pay sums ordered by employment tribunals, as well as the regulation of employment agencies and enforcement modern slavery laws. It consolidates the enforcement functions of HMRC (relating to the National Minimum Wage), the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority.

The FWA will have robust powers, including the ability to investigate employers suspected of worker exploitation, by conducting workplace inspections, imposing civil penalties for underpayments and bringing proceedings on workers' behalf. Although the FWA is being established in April 2026, it is not yet known when its enforcement power will commence.