A month after its inception, David Palmer outlines the new Fair Work Agency’s powers and resources, and asks if artificial intelligence could be utilised in its enforcement of employment rights.
The Fair Work Agency (FWA) is the new UK labour market enforcement body established on 7 April 2026 under the Employment Rights Act 2025. Should employers be concerned about the FWA’s wide powers coming to bear on them? What guardrails are in place to make sure it carries out its mandate proportionately and fairly?
The FWA operates as an executive agency of the Department for Business and Trade, bringing together the work of the Employment Agency Standards Inspectorate (EAS), the Gangmasters and Labour Abuse Authority (GLAA), the Director of Labour Market Enforcement (DLME) and HMRC’s National Minimum Wage enforcement team to become a “one-stop shop” for enforcing workplace rights.
The aim of the FWA is laudable: “a single place where workers and employers can turn for help.” However, it will also have strong powers to investigate and take action against businesses for non-compliance.
The government has said that the FWA is intended both to support employers who want to comply with employment law, and to take firm action against those who do not. This dual role means HR teams should expect increased guidance and engagement – but also more scrutiny, particularly where record-keeping or payroll processes are complex.
The question is exactly how the FWA...
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