On 7th April, the Fair Work Agency (FWA) was established as a single body to enforce workers’ rights and prevent exploitation of workers.
Why a single body has been created?
Previously, different bodies were responsible for enforcing different policies, making it difficult for employers and workers to know where to turn for help. Having one single body is intended to solve this problem, making it easier for workers to report breaches and for employers to find authoritative advice. A government spokesperson said: “The agency will take tough action against businesses that deliberately flout the law while supporting employers who want to do the right thing and strengthen workers’ rights.”
The government hopes enforcement will support fair competition, by preventing bad businesses from undercutting good employers.
What does the Fair Work Agency do?
The FWA is responsible for statutory rights and entitlements across England, Wales, Scotland and Northern Ireland, including:
National Living and National Minimum Wage (including for seafarers)
Gangmasters licensing, for organisations providing workers in agriculture, horticulture, shellfish gathering, associated processing and packaging.
Agency workers’ rights
Exploitation and modern slavery
Enforcement of Employment Tribunal penalties and ACAS settlements
It also has the authority to enforce Employment Tribunals Act 1996, Fraud Act 2006 and Employment Rights Act 2025.
The agency will provide advice and guidance to support employers in good practice. It will also take formal action where necessary to prevent future non-compliance, remedy harm where it has occurred, and tackle serious or persistent breaches.
How will it do this?
Workers and representatives can make complaints to the agency. The agency will also take referrals from other public bodies and partner with other agencies to act on intelligence. It will analyse data and risk indicators and take a proactive approach in high-risk sectors and situations.
Investigations will be proportionate to the risks identified. The FWA may request information, inspect records, interview workers or business representatives, and visit business premises. Generally, the aim is to work with businesses consensually. However, enforcement officers to have powers to obtain a warrant to enter premises, search anyone they find there, and seize material that may be relevant to their investigation. Authorised FWA Enforcement Officers may arrest individuals suspected of labour market offences. It is a criminal offence to obstruct an FWA Enforcement Officer exercising an enforcement function.
Enforcement actions will depend on the nature and seriousness of the breach. These start with advice and guidance to secure compliance, warning letters, and naming employers who pay less than the minimum wage. In more serious cases, powers extend to civil proceedings, financial penalties, and taking action to refuse, suspend or revoke licences. Where civil enforcement tools would not adequately address the conduct or risk, the agency may refer cases for prosecution, providing evidence gathered during investigation.
Sanctions will take account of the conduct and circumstances of the employer or business in question, as well as the best interests of the affected workers.
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