Government Sets Out Enforcement Strategy for New Fair Work Agency

By Jo Seery, Professional Support Lawyer

The government has published its enforcement policy statement and strategic steer for the new Fair Work Agency (FWA), setting out its responsibilities from April 2026 and plans to expand its enforcement role over the coming years. A Code of Practice on Fair Work Agency Labour Market Enforcement  Undertakings and Orders also set out the process the FWA will follow when taking enforcement action including when it may apply to the court for an order alongside other sanctions.

The FWA was established on 7 April 2026 under the Employment Rights Act 2025 as part of the government’s Plan to Make Work Pay, with the aim of improving compliance with employment rights including supporting responsible employers.

The FWA brings together responsibility for enforcing agency worker regulations, gangmasters licensing and serious labour abuse, including modern slavery, under a single leadership structure. This is intended to address the fragmentation of labour market enforcement and make it easier for workers and employers to understand how rights are enforced. Acas will continue to provide advice, training and dispute resolution services.

Funding and future role

For 2026/27, the FWA will operate with a budget of £60.1 million, but it remains to be seen given it’s wide remit whether that is enough given its additional enforcement responsibilities, including holiday pay enforcement.

National Minimum Wage enforcement will continue to be delivered by HMRC during 2026/27 under a contracting arrangement, before transferring fully to the FWA from April 2027. The government expects the FWA to use its transitional year to strengthen data sharing, reduce regulatory burdens, increase public awareness and prepare for its expanded role.

Next steps

The FWA is expected to publish a Transitional Year Delivery Plan, followed by its first statutory enforcement strategy in April 2027. The documents signal increased focus on labour market enforcement, with employers likely to face greater scrutiny as the FWA’s powers and remit expand.