Move over ACAS, HMRC inspectors and all the other regulators you’ve never quite heard of. There’s a new sheriff in town (or at least there will be), and they go by the name of Fair Work Agency (FWA).

If you’re an employer wondering whether this is another acronym to add to the compliance bingo card, then yes. But it’s also more than that, so let’s break down exactly who they are and what they are here to do!

Why invent a new agency?

Until now, workplace enforcement in the UK has been split across different bodies:

• HMRC handled the National Minimum Wage.
• The Employment Agency Standards Inspectorate looked after agencies and recruiters.
• The Gangmasters and Labour Abuse Authority (GLAA) focused on labour exploitation in high-risk industries.
• The Director of Labour Market Enforcement tried to coordinate the chaos.

The result of this is that employees and workers didn’t always know who to call when their rights were ignored, and employers faced a patchwork of enforcement styles. The Employment Rights Bill is tidying this up.

Enter the Fair Work Agency

Think of the FWA as the UK’s one stop shop for workplace enforcement as they will:

• Enforce minimum standards across the board: minimum wage, agency rules, gangmaster licensing, and even parts of the Modern Slavery Act.
• Step in on new areas like holiday pay and statutory sick pay, which until now weren’t policed by any state body.
• Issue underpayment notices with financial penalties; covering not just wages, but holiday pay and sick pay too.
• Investigate and inspect workplaces (yes, they can knock on your door).
• Support workers legally, including taking cases to tribunal on their behalf.
• Impose enforcement undertakings or orders with criminal penalties if ignored.
• Recover its costs from non-compliant employers which is a nice way of saying “you’ll pay for wasting our time”.
• Work with an Advisory Board bringing together unions, employers and experts

The timeline; so you can plan ahead

• 2024: The Employment Rights Bill was introduced.
• July 2025: Government publishes the roadmap.
• April 2026: The Fair Work Agency officially opens for business.
• October 2026 onwards: New powers start rolling out.
• 2027 onwards: Wider measures phased in.

What does this mean in practice?

For workers:

• A single, visible regulator that can actually help if you’re underpaid or denied your rights.

For employers:

• Less confusion about which inspector might come calling but fewer excuses for getting it wrong.
• More areas of workplace law with real enforcement teeth, rather than just theoretical rights.

Final thoughts

The UK has long prided itself on giving workers rights ‘on paper’. The Fair Work Agency is the government’s attempt to ensure those rights mean something in practice or put another way; if you’ve been quietly under-paying holiday entitlement, you may want to start budgeting for either back pay or biscuits for the inspectors!

Overall, we don’t believe it is a bad thing for employers, as the FWA should be willing to collaborate with employers as part of their advisory services and provide clarity for all as to who is able to enforce employment legislation.