[UK] Fair Work Agency now in force

[UK] Fair Work Agency now in force
09 Apr 2026

In the UK, a new government agency created to enforce employment rights came into force this week, The Business Desk reports.

The Fair Work Agency will have the right to carry out unannounced investigations of businesses that it suspects are breaching employment laws.

Its remit reportedly includes robust powers to investigate and tackle employers flouting the law, including workplace inspections, civil penalties for underpayments, and the ability to bring proceedings on workers’ behalf. 

Since the announcement of the Fair Work Agency’s creation, it has seen lobbying from business organisations and trade unions with differing priorities. 

The agency, chaired by former Blair government adviser Matthew Taylor, states that it will also provide support to businesses on following employment laws, saying it will help to “create a level playing field for all where those who want to do the right thing aren’t undercut by those who don’t”.

Research held by the Fair Work Agency revealed that 900,000 UK workers annually have their holiday pay, with a value of around £2.1 billion, withheld, and nearly 20 per cent of minimum wage workers are underpaid.

Employers are now required to keep records of annual leave and holiday pay for up to six years. 

The new body unites the Gangmasters and Labour Abuse Authority (GLAA), the Employment Agency Standards Inspectorate (EAS), and takes responsibility from HMRC for its National Minimum Wage Unit. It will reportedly continue to name employers who fail to pay the lawful amount.

Business Secretary Peter Kyle said,  “The current enforcement system doesn’t deliver for businesses or working people. Our Fair Work Agency will be a game-changer in ensuring rights are properly enforced, whilst backing those businesses that already do the right thing.”



Source: The Business Desk

(Quotes via original reporting)

In the UK, a new government agency created to enforce employment rights came into force this week, The Business Desk reports.

The Fair Work Agency will have the right to carry out unannounced investigations of businesses that it suspects are breaching employment laws.

Its remit reportedly includes robust powers to investigate and tackle employers flouting the law, including workplace inspections, civil penalties for underpayments, and the ability to bring proceedings on workers’ behalf. 

Since the announcement of the Fair Work Agency’s creation, it has seen lobbying from business organisations and trade unions with differing priorities. 

The agency, chaired by former Blair government adviser Matthew Taylor, states that it will also provide support to businesses on following employment laws, saying it will help to “create a level playing field for all where those who want to do the right thing aren’t undercut by those who don’t”.

Research held by the Fair Work Agency revealed that 900,000 UK workers annually have their holiday pay, with a value of around £2.1 billion, withheld, and nearly 20 per cent of minimum wage workers are underpaid.

Employers are now required to keep records of annual leave and holiday pay for up to six years. 

The new body unites the Gangmasters and Labour Abuse Authority (GLAA), the Employment Agency Standards Inspectorate (EAS), and takes responsibility from HMRC for its National Minimum Wage Unit. It will reportedly continue to name employers who fail to pay the lawful amount.

Business Secretary Peter Kyle said,  “The current enforcement system doesn’t deliver for businesses or working people. Our Fair Work Agency will be a game-changer in ensuring rights are properly enforced, whilst backing those businesses that already do the right thing.”



Source: The Business Desk

(Quotes via original reporting)

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