The Fair Work Agency, a central plank in the Government’s plans for enforcing the new Employment Rights Act came into being on 7 April 2026. It’s remit is to bring together the existing enforcement functions of;
- HMRC relating to National Minimum Wage
- The Employment Agency Standards Inspectorate
- The Gangmasters and Labour Abuse Authority
Over time the Fair Work Agency is expected to take on the enforcement of a wider range of employment rights, including holiday pay and SSP.
The intention is for the Fair Work Agency to become a single place where workers and employees can turn for help.
It will aim to support businesses to comply with the law, avoid future infringements and use enforcement powers where malpractice occurs.
They will also have the power to bring proceedings in the Employment Tribunal on a worker’s behalf. For the first time therefore we will have state enforcement of employment law rights in the UK.
It has also been confirmed that to help in it’s duties the Fair Work Agency will have the same rights as police to obtain warrants to search premises and seize documents. This is a significant step that many employers are unaware of.
How to Prepare?
In order to prepare your business for a potential investigation by the Fair Work Agency you should;
- Review pay practices, ensuring that National Minimum Wage, holiday pay and SSP obligations are being met in practice.
- Pay particular attention to deductions, working time calculations and irregular hours arrangements as well as worker status and record keeping practices
- Audit employment contracts and policies.
- Train line managers, especially those on the front line making decisions to ensure that they are fully aware of latest rights.
Nockolds’ team of specialist employment lawyers and HR consultants are able to visit your business and assist you with an audit of your employment paperwork. We can visit your premises, review your paperwork, ensure compliance and highlight any potential areas of concern or for improvement. Our audit report can then help assist in demonstrating that you have taken all reasonable steps to comply with your obligations.
If you would be interested in this service please do contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and we will be in touch.