Fair Work Agency: What Employers Need to Know in 2026

Find out what Dorset employers need to know about the Fair Work Agency, its enforcement powers and the steps businesses can take to stay compliant.

The Fair Work Agency (FWA) launched on 7 April 2026 under the Employment Rights Act 2025, bringing together employment enforcement work that previously sat with HMRC, the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority. Its remit includes areas such as National Minimum Wage, Statutory Sick Pay, holiday pay, written employment statements and agency worker protections.

The article explains that the FWA can investigate businesses without receiving a complaint and has a broad range of enforcement powers. These include requesting employment records, carrying out workplace inspections, recovering underpayments, imposing penalties, publicly naming businesses and pursuing criminal sanctions in cases of intentional non-compliance.

For employers, the recommended next step is a compliance self-audit covering areas including contracts, worker status, payroll, record keeping, National Minimum Wage, Statutory Sick Pay, holiday pay and working time arrangements. With further enforcement powers expected in 2027, getting the basics right and keeping clear evidence of compliance can help businesses prepare.

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