The Fair Work Agency – What This Means for Employers

The UK's new Fair Work Agency (FWA) is set to transform employment rights enforcement by bringing several existing enforcement bodies together under one organisation. The agency aims to simplify compliance for employers while providing stronger protections for workers.

What will the Fair Work Agency do?

The FWA will oversee enforcement in areas including:

• National Minimum Wage and National Living Wage

• Statutory Sick Pay

• Employment agency regulations

• Labour exploitation and modern slavery protections

• Holiday pay enforcement

• Employment tribunal penalty enforcement schemes

The agency is designed to provide a single point of contact for workers and employers, helping to make employment rights enforcement easier and more consistent.

Increased Enforcement Powers

The FWA will have authority to:

• Inspect workplaces

• Request employment records and documentation

• Investigate potential breaches of employment law

• Recover unpaid wages and holiday pay

• Issue financial penalties for non-compliance

• Take legal action on behalf of workers in certain circumstances

These enhanced powers signal a more proactive approach to employment rights enforcement than the current system.

What Should Employers Do Now?

Review their current practices to ensure compliance, particularly in relation to:

• Holiday pay calculations

• Minimum wage compliance

• Record-keeping processes

• Contracts and working time arrangements

• Agency worker engagement

With greater scrutiny expected, robust employment records and regular compliance audits will be increasingly important.

Key Takeaway

The Fair Work Agency represents one of the most significant changes to employment rights enforcement in recent years. Employers who take proactive steps to review policies and ensure compliance will be best placed to navigate the new enforcement landscape while maintaining fair and positive workplace practices.

Fair Work Agency 

National Minimum Wage Rates from 1st April 2026

Every year, the National Minimum Wage (NMW) including the National Living Wage (NLW) are set to rise from the 1st April.

The new rates from the 1st April 2026 will be:

• NLW 21 years old and over: £12.71 per hour 

• Age18-20: £10.85 per hour 

• Age under 18 but above compulsory school leaving age: £8.00 per hour  

• Apprentices aged under 19: £8.00 per hour 

• Apprentices aged over 19 but in their first year of apprenticeship: £8.00 per hour 

If you pay any employees the NLW or NMW, or close to it, it’s a good idea to check their current pay now to see what adjustments you need to make ready for April.

Other important rises from 6th April 2026

Weekly rates that will apply from 6th April include:

• Statutory maternity, paternity, adoption, parental bereavement, neonatal care, and shared parental leave payments will rise to £194.32 per week.

• Statutory sick pay, which will rise to £123.25 per week from 6th April.

If this is written into your policies then don’t forget to amend them ready for April.

Employment Rights Bill roadmap: Key dates for April 2026

• Statutory Sick Pay (SSP) will be payable from the first day of sickness absence (removing the current 3-day "waiting period")

• Lower Earnings Limit (LEL) will be removed for Statutory Sick Pay (SSP), which means employees earning below the current threshold of £125 per week will become eligible for SSP

  
  

• Paternity leave will become a day-one right (currently employees must have 26 weeks continuous service to qualify)

  
  

• Unpaid parental leave will become a day-one right (currently employees must have 12 months continuous service to qualify)

  
  

• Whistleblowing - reports of sexual harassment will become protected disclosures under clause 22 of the Employment Rights Bill, which means workers who report sexual harassment can gain specific legal protections against dismissal and detriment.