Fair work agency

A new state enforcement agency, called the Fair Work Agency (FWA) is to be established which will eventually be responsible for enforcing the National Minimum Wage (NMW), holiday pay, and modern slavery and labour exploitation laws. It will also be responsible for enforcing statutory sick pay (SSP) which becomes payable from day 1 in April 2026 including to eligible low-paid workers. It will be given significant investigative and other powers in order 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 which are defined in the ERA 2025 as employment businesses.

Matthew Taylor, a former Interim Director of Labour Market Enforcement and 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 at all in circumstances where the individual themselves is not going to bring them. 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. It is not clear how this will work in practice although it can be expected to be quite limited due to the significant resourcing implications. How effective it 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