Fair Work Agency (FWA): What employers need to know

What is the Fair Work Agency and what does it enforce?

The government’s new enforcement agency the FWA was established on 7th April 2026. They are currently responsible for enforcing agency regulations, gangmaster licensing and serious labour abuses including modern slavery. They have also taken over enforcing unpaid Employment Tribunal claims and can impose fines of up to 50% (subject to a cap) of the amount due along with naming and shaming those who do not pay. From April 2027 they will take over National Minium Wage enforcement which remains with HMRC until then. Over time they will also cover SSP and holiday pay enforcement and we will keep you updated with developments.

Fair Work Agency priorities and investigation powers

Government has set the FWA priorities for this year which include engaging public and stakeholders and increasing awareness for employees of enforcing their rights. An increased awareness or rights has likely played a part in the recent surge in Employment Tribunal claims, so we can expect to see this trend continue. The FWA has also indicated that it will focus on vulnerable employee groups such as zero hours workers and those on National Minium Wage, so we are likely to see them being more proactive in industries that have high numbers of these types of workers.

The FWA has been given broad powers to investigate and take actions against employers. This includes the ability to inspect workplaces (they do not have to let you know they are coming), demand documentation, and interview workers or employer representatives. They can also enter private dwellings with a court order to check documents including those on computers. Employers and individuals may face criminal charges for providing false documentation or obstructing the FWA, which could result in fines or imprisonment depending on the circumstances. You are unlikely to be able to withhold information or refuse to cooperate unless you have a good reason. A good reason will not include that it is inconvenient for you, that a senior member of your team is unavailable or that you need to consult your lawyers, because the FWA expect you to understand their powers.

Your FWA compliance checklist: Next steps for employers

• Identify who will manage any communications with the FWA and ensure adequate backup personnel are available. Ensure these individuals are trained and understand the FWA’s powers.
• Train front line staff, such as reception staff, in how to cooperate with a request from the FWA and how to escalate internally.
• Audit your compliance with statutory payment rules.

If you would like to understand your obligations in more detail, please get in touch.