The Fair Work Agency – what does this mean for employers?

The FWA has been introduced to help workers understand their rights, make compliance simpler and to take tough action against “rogue” employers who exploit workers and/or undercut legitimate businesses. Changes are being introduced so that the FWA is a single body designed to make enforcement more joined-up, intelligence-led and effective at tackling exploitation.

The FWA will comprise 

• Employment Agency Standards Inspectorate,
• Gangmasters and Labour Abuse Authority, and
• the Office of the Director of Labour Market Enforcement.

The FWA also has statutory responsibility for NMW enforcement. HMRC delivers it under contract before full transfer to the FWA from April 2027. 

The first year is laying the foundations for the longer-term. Beyond year one NMW inspectors from HMRC will join the FWA in April 2027. The government is also looking to expand the FWA’s remit, with a range of new duties under consideration. Holiday pay enforcement is expected to begin in 2027.

The introduction of the FWA will see a more joined up approach to many employment matters and the fact that enforcement is high on the agenda may see increased activity in both NMW reviews and going forward the payment of holiday pay. In advance of this employers should take this opportunity to review their systems and processes to ensure that they are compliant in both these areas. 

If there is anything you wish to discuss in relation to either National Minimum Wage compliance or holiday pay, please contact caroline.jones@albertgoodman.co.uk