The new Fair Work Agency (FWA)

Employers are facing increased oversight with the launch of a new government enforcement body aimed at strengthening workers’ rights.

Since 7th April a single agency has taken over responsibilities previously handled by several separate regulators. These include enforcement of minimum wage laws, oversight of labour providers, and regulation of employment agencies. The new body is also tasked with tackling serious labour abuses, including modern slavery.

In addition to enforcing existing protections, the organisation will be able to recover unpaid tribunal awards on behalf of workers. Employers who fail to pay could face an extra financial penalty of up to 50% of the outstanding amount.

Its remit is expected to expand further, covering areas such as statutory sick pay and holiday pay compliance. Businesses that underpay staff may be fined up to double the amount owed, subject to a maximum limit per worker. Other consequences could include covering enforcement costs and being publicly identified for non-compliance.

The agency has broad investigatory powers. It can enter workplaces, examine records, speak with employees, and look into potential breaches dating back as far as six years. Workers will also be able to report concerns directly, and the agency may pursue legal claims or provide support on their behalf. The initiative is also intended to ease pressure on the employment tribunal system, which has seen a growing backlog of cases in recent years.

Employers are being encouraged to review their practices in advance. Ensuring that workplace policies match actual day-to-day operations is seen as key to demonstrating compliance. Maintaining comprehensive records is also considered essential.

Organisations are advised to check payroll processes, employment contracts, and internal policies to confirm they are accurate and up to date. There is also a new legal requirement to keep detailed records of holiday entitlement and pay. Failing to meet this obligation could result in criminal liability and significant financial penalties.

Businesses are being urged to assess what records they already hold and identify any gaps, so they can meet compliance requirements from the outset. While the full timeline for enforcement activity is still unclear, the obligation to maintain proper records is already in effect, making it a priority area for employers.

Should you require further information contact 121 HR Solutions on 0800 9995 121.

The new Fair Work Agency (FWA)

121 HR Solutions Ltd