The Fair Work Agency (FWA) was established under the Employment Rights Act 2025. It consolidates several enforcement functions into a single body, improving the consistency and effectiveness of employment rights enforcement across the UK.
The FWA brings together HMRC’s National Minimum Wage enforcement team, the Employment Agency Standards Inspectorate (EASI), and the Gangmasters and Labour Abuse Authority (GLAA).
The FWA inherits existing enforcement powers from HMRC, EASI, and GLAA, enabling it to investigate and penalise non-compliant employers. Existing HMRC enforcement teams are transferring to the FWA to maintain continuity in NMW enforcement.
NMW compliance is a key early priority for the new agency. Enforcement activity will include audits, inspections, and the public naming of non-compliant employers. Schools found to have underpaid staff face not only back-pay obligations and financial penalties, but also significant reputational damage.
While schools may not seem like high-risk employers, the pay arrangements commonly used for support staff, casual workers, apprentices, and term-time only contracts can present specific NMW compliance challenges.
One common risk area is failing to accurately record and pay for additional hours worked. While contracts may permit schools to require additional hours without pay (unless agreed in advance), a careful record of actual hours...
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