The Fair Work Agency: The New Enforcement Body

On 7 April 2026, the Fair Work Agency began operating as the enforcement body for employment rights in the UK.

It represents a consolidation of enforcement functions that had previously been divided between several organisations, and it is one of the more structurally significant elements of the Employment Rights Act 2025.

Here is what it does and what it means.

Enforcement was previously fragmented.

Before the Agency, responsibility for enforcing different employment rights sat in different places.

Minimum wage enforcement was handled by one body, employment agency standards by another, and licensing of labour providers in certain sectors by a third. Many other rights had no state enforcement at all and could only be pursued by the individual worker through an employment tribunal.

That fragmentation meant workers frequently did not know where to go, and enforcement effort was uneven across different rights.

The Agency brings functions together.

The Fair Work Agency consolidates those functions into a single body with a single point of contact.

It has powers to investigate employers and to take action where breaches of employment law are identified, including in relation to matters that previously depended entirely on individual claims.

The practical significance is that a worker no longer necessarily has to bring a tribunal claim themselves for enforcement to occur, and that enforcement can address patterns of behaviour across a workforce rather than individual cases.

What it covers.

The Agency's remit spans core statutory rights including national minimum wage and national living wage, holiday pay, statutory sick pay, and rights relating to agency workers and employment agencies.

It also carries forward functions relating to labour exploitation and modern slavery in the labour market that were previously handled by a separate licensing authority.

The scope is expected to develop as further provisions of the Act commence, so the practical boundaries of what it enforces will become clearer over time.

Holiday pay enforcement is significant.

Among the more consequential inclusions is holiday pay, which has historically been a widespread compliance problem, particularly for workers with irregular hours, zero-hours arrangements and those paid partly through commission or overtime.

Holiday pay errors are common, frequently unintentional, and have generated substantial litigation over the past decade.

State enforcement changes the calculus for employers who have not corrected known problems, since the risk is no longer limited to whether an individual worker brings a claim.

What employers should expect.

Investigations may follow complaints, intelligence or targeted campaigns in particular sectors.

Employers should assume that records will be requested, and that inability to produce accurate records of hours worked, pay calculations and holiday entitlement will itself be a problem.

Sectors with historically higher rates of non-compliance, including hospitality, care, cleaning, agriculture and parts of retail and logistics, are the most likely focus of proactive activity.

For Newcastle, that includes a substantial hospitality sector and a large care workforce.

What workers should know.

If you believe your employer is not paying the minimum wage, not paying holiday correctly, or breaching other core rights, you can report it.

Reports can be made without your employer being told who reported, though the practicalities vary depending on the nature of the investigation.

It is unlawful to subject a worker to detriment for asserting a statutory right, and dismissal for doing so is automatically unfair regardless of length of service.

Reporting does not prevent you from also bringing a tribunal claim, though time limits for tribunal claims are short, generally three months less one day from the act complained of, and reporting to the Agency does not pause that clock.

Tribunal claims still matter.

The Agency does not replace the employment tribunal system. Individual claims for unfair dismissal, discrimination, breach of contract and many other matters remain the route for the individual.

Acas early conciliation remains a mandatory step before most tribunal claims, and it is free.

The tribunal system has faced substantial backlogs, with waiting times for hearings extending well beyond a year in many regions, which is one reason state enforcement of core rights matters.

Keeping records protects everyone.

For workers, keeping your own record of hours worked, breaks taken, payslips and communications about pay is the single most useful protection.

For employers, accurate timekeeping and payroll records are both a legal requirement in most respects and the primary defence against allegations.

Payslips must be itemised and must show hours where pay varies by hours worked.

Where to get help.

Acas provides free advice to both workers and employers and operates a helpline.

Citizens Advice offers free employment advice, and trade unions provide representation to members.

Newcastle has a number of employment law solicitors, and some offer initial consultations without charge. Some cases may be taken on a no win no fee basis, and legal expenses insurance attached to home insurance policies frequently covers employment disputes and is widely forgotten.

Share your thoughts.

Have you ever had to challenge an employer over pay?