What Do Employers Need To Know About The Fair Work Agency?

In April, the Employment Rights Act 2025 will introduce the first major wave of employment law reforms, designed to strengthen workers’ rights. Alongside changes to employee day one rights, the government will also introduce the Fair Work Agency, a new body that aims to make the enforcement of employment laws simpler and more effective.

If you’re unsure what the Fair Work Agency is, or what it means for your business, then read on. At Hibberts Solicitors, our employment law solicitors have been providing tailored, independent legal advice to businesses across Cheshire and Shropshire since 1799. In this article, we explain what employers need to know about the Fair Work Agency, what its role will be, and what you can do to prepare.

What is the Fair Work Agency 2026?

The Fair Work Agency (FWA) is a new enforcement body being introduced by the UK Government this April to help modernise and strengthen the way that workers’ rights are protected. It will be an Executive Agency of the Department for Business and Trade and will have the power to investigate breaches of employment law and take action against employers who do not comply.

Currently, there are several different organisations responsible for enforcing employment rights in the UK, including HMRC’s National Minimum Wage enforcement team, the Employment Agency Standards inspectorate, and the Gangmasters and Labour Abuse Authority. The Fair Work Agency will combine all of these functions into one single authority, so employers and workers always know where to turn for help with employment rights.

Why is the government introducing the Fair Work Agency?

Historically, responsibility for the enforcement of employment rights has been divided between several different organisations, which has sometimes made the system complicated, fragmented, and inefficient. It is being introduced to consolidate the enforcement of certain employment rights into one place.

The introduction of the Fair Work Agency aims to simplify the process and make it fairer, to give workers the confidence to report breaches of employment rights that may have otherwise gone unchallenged.

When is the Fair Work Agency being introduced?

The Fair Work Agency will begin operating on 7 April 2026. It is one aspect of the wider employment law changes in April 2026 being introduced by the new Employment Rights Act 2025.

What powers will the Fair Work Agency have?

The FWA will have powers to help it enforce employment rights, particularly those relating to the National Minimum Wage, agency worker protections, and gangmaster licensing. These include the power to:

• Investigate employers.
• Request and inspect records kept by employers.
• Recover unpaid wages or holiday pay.
• Issue penalties for non-compliance.
• Take enforcement action against employers who repeatedly breach regulations.

The Agency’s powers and responsibilities are being rolled out in stages, so over time, it is expected to take on the enforcement of a wider range of employment rights.

What does this mean for employers?

For most employers, the introduction of the Fair Work Agency is unlikely to cause significant disruption, and day-to-day operations should largely continue as normal.

Employers will be able to contact the Agency for guidance and support on employment law compliance. Instead of navigating several different organisations to find the right advice, the FWA will become the central hub for everything related to workplace rights and enforcement.

However, employers should be aware that the new Agency’s primary aim is to level the playing field by making it much easier for employees to raise concerns and report breaches of employment law. This will mean that employers will face much greater scrutiny, making it more important than ever that workplace policies, procedures, and record-keeping processes are fully up to date.

What should employers do now to prepare?

In light of these changes, we advise all employers to take steps to audit their current employment practices to ensure that they are operating in accordance with up-to-date employment legislation.

Key areas to review include:

• Employment contracts.
• Employee salaries and National Minimum Wage calculations.
• Dispute handling process.
• Workplace policies.
• Holiday pay calculations.
• Record-keeping processes.
• Manager and HR staff training.

Contact Hibberts Solicitors for help with employment law compliance or disputes

If you would like help reviewing your company’s policies and procedures to ensure they comply with the latest employment legislation, contact Hibberts Solicitors in Cheshire. Our employment law solicitors advise businesses across Tarporley, Nantwich, Whitchurch, Crewe, and throughout Shropshire and Cheshire on workplace compliance, employment contracts, and dispute resolution.

We can help with drafting and reviewing employment contracts and workplace policies, resolving employment disputes, and providing workplace training to ensure managers and HR staff understand the latest developments in employment law.

For employment law advice for employers, contact us on 01270 215 117 or by emailing enquiries@hibberts.com.