The Fair Work Agency (FWA) is the UK Government’s new body responsible for enforcing workers’ rights. They have been issued a ‘Strategic Steer’ for their first year of delivery.
The Fair Work Agency (FWA) was established on 07 April 2026. Legislated by the Employment Rights Act 2025 it abolished:
- The Employment Agency Standards Inspectorate (EAS, regulating employment agencies and employment businesses in Great Britain); and
- The Gangmasters and Labour Abuse Authority (GLAA in England and Wales)
It combines them into a single enforcement body.
The FWA will operate UK-wide on issues that apply UK-wide. Many employment and working time obligations within scope are either devolved or apply only in Great Britain. In Northern Ireland, enforcement will continue via the Labour Relations Agency, the Northern Irish equivalent of the Great British Advisory, Conciliation and Arbitration Service (Acas) and the Employment Agency Inspectorate (EAI) (which sits within the Department for the Economy ).
The UK Government has published its expectations of the FWA in a Strategic Steer document in the year to April 2027 and ICB highlights those relevant to employers and members:
From April 2026
Compliance with the following is within the FWA’s remit:
- The Agency Worker Regulations;
- Gangmasters licensing; and
- Serious labour abuse (including modern slavery but not in Scotland or Northern Ireland)
Plus, they will work with Acas to ensure their guidance is clear on employers’ compliance obligations.
Throughout 2026
The expectation is the FWA will operate compliance at least to the standard operated by previous enforcement bodies.
It must also prepare for enforcement of the National Minimum / Living Wage under a ‘contracting arrangement’ with HMRC. This will allow them real-time access to HMRC’s systems.
From April 2027
Enforcement with the following will transfer to the FWA:
- The National Minimum / Living Wage (transferring from HMRC); and
- Holiday leave and pay
It will not enforce payment of agricultural minimum wages in Scotland, Wales and Northern Ireland.
In addition, the FWA must set clear plans on how they will extend their enforcement remit to other employment and working time rights. This might include payment of Statutory Sick Pay (SSP) which is not specifically mentioned in the Steer document.
The FWA will respond via a ‘Transitional Year Delivery Plan’ which will outline how they plan to meet the UK Government’s expectations.
For Bookkeepers
2026 is clearly a year when enforcement powers will gradually transition to the FWA. It will increasingly have powers to investigate breaches of employment and working rights, issue civil penalties and act when employers fail to meet their statutory obligations.
It does not create new legal obligations and is a body to enforce those already in place.
Most employers do meet their statutory obligations and if they are doing things correctly and compliantly the FWA does not pose a threat. The key things for members to review are compliance with employment and working time rights, for example:
- Payment for working time at the National Minimum / Living Wage;
- Recording and payment of holiday leave and pay;
- Compliance with the Agency Worker Regulations; and, eventually
- Recording and payment of Statutory Sick Pay
