Ahead of imminent establishment of new state enforcement body, People Management explains how employers can best prepare
30 March 2026
Employers’ actions will soon be under greater scrutiny, with a new state enforcement agency set to be established next week.
From 7 April, the Fair Work Agency (FWA) will combine the roles of the HMRC’s national minimum wage enforcement team, the Gangmasters and Labour Abuse Authority and the Employment Agency Standards Protectorate.
The new agency will enforce national minimum wage, agency protections and gangmaster licensing and take action against employers who commit modern slavery offences.
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Lisa Pinney, who was previously chief executive of the Mining Remediation Authority, has been appointed as CEO of the FWA, while Matthew Taylor will take the position of chair. They will work alongside an advisory board, made up of nine members with independent, employer and trade union backgrounds.
The FWA will take on the enforcement of additional rights, including statutory sick pay and holiday pay.
Employers could face penalties of up to 200 per cent of the amount they underpay workers, capped at 20,000 per affected employee. This could come alongside the recovery enforcement costs and public naming of non-compliant businesses.
The FWA will have the power to inspect workplaces, view employment records and interview workers, as well as investigate...
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