On 30 June 2026, the Department for Business and Trade published a consultation on how the Fair Work Agency will enforce statutory holiday pay from 2027. The consultation builds on the Employment Rights Act 2025, which gives the FWA responsibility for enforcing holiday pay alongside its existing remit for national minimum wage and other labour market protections.
The consultation closes on 22 September 2026.
Currently, workers who believe they have been underpaid holiday pay generally have to bring an employment tribunal claim themselves. The proposals would allow the FWA to investigate statutory holiday pay underpayments, recover arrears on behalf of workers and, where appropriate, issue financial penalties.
The FWA's powers will apply only to statutory holiday entitlement under the Working Time Regulations. Disputes about contractual entitlement will continue to be dealt with through the courts or employment tribunals.
The proposals also reinforce the FWA's ability to take a "whole employer" approach. Rather than dealing only with an individual complaint, the agency could review compliance across an employer's entire workforce and...
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