The Fair Work Agency (FWA) officially launched on 7 April 2026, bringing together several existing employment enforcement bodies under one roof. Predictably, its arrival has generated concern among HR teams about increased inspections, tougher penalties and greater scrutiny.

But before anyone starts panic-updating every policy in sight, it is worth remembering one important point: the FWA does not create new employment rights. Instead, it changes how existing rights are enforced. 

So, what actually changes?

The FWA consolidates enforcement powers previously spread across bodies including HMRC’s National Minimum Wage unit, the Gangmasters and Labour Abuse Authority and the Employment Agency Standards Inspectorate. 

Its remit already includes:

• National Minimum Wage enforcement 
• agency worker regulation 
• modern slavery enforcement 
• unpaid tribunal awards 

And from 2027, it is expected to take on enforcement of:

• Statutory Sick Pay 
• annual leave and holiday pay 

Why HR should pay attention

For many employers, the biggest change is not the law itself — it is the likelihood of more coordinated and proactive enforcement.

Historically, many breaches only came to light after an employee brought a tribunal claim. The FWA is intended to work differently. It has investigatory powers, the ability to conduct inspections and the power to request extensive employment records. 

Even employers outside traditionally “high-risk” sectors should not assume they are immune. Complaints from workers, poor record-keeping, or inconsistent practices could all attract attention.

Transitional year – but not a free pass

The Government has described 2026–27 as a transitional period while the FWA becomes fully operational. 

That may buy employers some breathing space – but it also creates an opportunity. HR teams should use this period to identify weak spots before enforcement activity ramps up.

Practical takeaway

Rather than treating the FWA as a reason to panic, employers should see it as a prompt to revisit core compliance areas:

• payroll practices 
• holiday pay calculations 
• SSP processes 
• worker status 
• record retention 

The employers most likely to struggle under the new regime are not necessarily those acting deliberately unlawfully – but those relying on outdated processes, inconsistent practices or incomplete records.

About Jon Dunkley

Jon Dunkley is a Partner at Wollens and heads up the firm’s Regulatory Department. Based at our North Devon office, Jon is a highly experienced solicitor with a broad commercial and regulatory practice, supporting businesses, professionals and senior employees across a wide range of legal issues.

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.