The FWA is a new enforcement body which will, in time, cover many employment rights including the statutory obligation to pay at the National Minimum / Living Wage. A working relationship framework agreement has been agreed between the FWA and the Department for Business and Trade (DBT).
The Employment Rights Act 2025 established the FWA on 07 April 2026 as an Executive Agency of the Department for Business and Trade (DBT). It brings together enforcement previously delivered by:
- The Gangmasters and Labour Abuse Authority (GLAA);
- The Employment Agency Standards Inspectorate (EASI); and
- The Director of Labour Market Enforcement (DLME)
It also took over National Minimum / Living Wage enforcement, however, in 2026/27 this will continue to be delivered by HMRC.
On 09 July 2026, the FWA and DBT published a ‘Framework Document’ that sets out the broad governance framework, including its core responsibilities. This will be reviewed after one year and thereafter every three years.
It is important this document is regarded as long-term enforcement powers, as not everything will be delivered at the same time. The enforcement activities for delivery will be set out in ‘Strategic Steers’ and the one for the FWA’s first year of operation (2026/27) was published on 07 April 2026. This confirms the following enforcement powers are within its remit for 2026/27:
- Gangmasters licensing and labour exploitation in the UK;
- Agency worker regulation; and
- Labour abuse, including modern slavery
This document confirmed National Minimum / Living Wage enforcement will be begin from April 2027.
For Bookkeepers
For now, the FWA should probably be regarded as regulation and enforcement as normal. 2026/27 is a year of discovery with a focus on reducing unnecessary regulatory burdens, improving guidance and developing data systems from the bodies it replaces.
2027 will see an expanded remit, including National Minimum / Living Wage enforcement, so the FWA and the Strategic Steers are things to keep an eye on.