Georgia Cowen outlines the enforcement body’s legal powers, and what businesses can do to stay compliant

The Fair Work Agency (FWA) is a new single labour market enforcement body, created by the Employment Rights Act 2025, that brings together enforcement functions currently split between HMRC and other bodies, with the aim of strengthening workers’ rights and ensuring consistency in enforcement.

The FWA is initially taking over the remit of existing agencies before having its powers widened to other areas at a later date. It has responsibility for enforcing the following:

• National minimum wage (NMW) – HMRC is continuing to enforce it under a current contracting arrangement with the FWA, but the FWA is expected to take over in 2027.
• Gangmasters licensing – regulating businesses that provide or use workers in certain regulated sectors.
• Agency standards – ensuring compliance with employment rights.
• Labour abuse and exploitation – partnering with the police, the National Crime Agency and other law enforcement agencies to target and disrupt serious and organised crime. This includes the Modern Slavery Act.
• Employment tribunal penalties – enforcing against employers that fail to pay tribunal awards and agreed sums due under Acas settlements via COT3.

In due course, the FWA will also enforce:

• Working time holiday – statutory holiday pay (including rolled-up pay) and record-keeping duties.
• Statutory sick pay (SSP) – employer duties to pay SSP and provide the required...

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