Fair work agency

A new state enforcement agency called the Fair Work Agency (FWA) is to be established and will eventually be responsible for enforcing the National Minimum Wage (NMW), holiday pay, modern slavery, labour exploitation laws and statutory sick pay (SSP). It will be given significant investigative powers to perform this role.

The FWA brings together the Employment Agency Standards Inspectorate (EASI) and the Gangmasters and Labour Abuse Authority (GLAA) and will regulate umbrella companies that are defined in the ERA 2025 as employment businesses. 

Matthew Taylor, a former Interim Director of Labour Market Enforcement who was commissioned to carry out a review of modern working practices under the previous government, has been appointed as the Chair of the FWA, which is expected to be created on 7 April 2026. 

Significantly, the FWA will have the power to bring employment tribunal claims on behalf of individuals and offer legal assistance in civil proceedings. This relates to almost any tribunal claim in circumstances where the individual is not going to bring proceedings. The FWA will also be able to lend assistance to parties in civil claims relating to employment or trade union law or the law of labour relations. The government has confirmed that further guidance will be published to explain how this will work in practice. How effective the FWA is as an enforcement agency will ultimately depend on the resources it is allocated.  

 

Visit our main Employment Rights Act Hub for further information.Â