HR professionals can act now, to get organisations ready for a new era of employment rights enforcement, Marie van der Zyl explains.
HR teams could have a few weeks before the Employment Rights Bill allows for a new enforcement body, the Fair Work Agency (FWA), to begin operating. Waiting until the legislation is finalised risks being unprepared. Acting early can mean anticipating compliance pressures and reducing costly interventions.
The FWA is set to consolidate multiple enforcement bodies into a single agency, covering minimum wage compliance, worker exploitation, employment standards and holiday pay. While the agency promises clearer guidance, it also signals stronger, more coordinated enforcement. The FWA may conduct joint inspections, issue faster compliance notices, and have more visible scrutiny of rule breaches, particularly in sectors with many low-paid or insecure workers, such as hospitality, logistics and agriculture.
Holiday pay
Holiday pay is expected to be a major early focus. Unlike wages, it has not been subject to state enforcement but, for the first time, the FWA could intervene directly. Early guidance suggests that the FWA could issue notices requiring repayment within 28 days, with penalties of up to 200% of the sum due, capped at 20,000. Recoverable amounts may extend back six years. The Bill may also introduce a criminal offence for failing to maintain adequate holiday records, adding a new compliance risk.
Stronger enforcement
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