What Is the Fair Work Agency
The Fair Work Agency (FWA) is a new enforcement body established under the Employment Rights Act 2025. It came into existence on 7 April 2026. Its purpose is to consolidate employment law enforcement functions that were previously split across several different agencies, and to provide more effective enforcement of workers' rights, particularly for those who are unlikely to bring their own claims.
Before the FWA, enforcement of employment rights was fragmented across HMRC (minimum wage and SSP), the Gangmasters and Labour Abuse Authority (labour exploitation), and the Employment Agency Standards Inspectorate (employment agencies). The FWA brings these functions together under a single body with expanded powers.
What the FWA Can Enforce
The FWA has enforcement powers over a defined range of employment legislation, including the National Minimum Wage Act 1998, the Working Time Regulations 1998, the Employment Agencies Act 1973, the Gangmasters (Licensing) Act 2004, and statutory sick pay obligations. Its remit includes holiday pay enforcement -- a significant addition given the widespread underpayment of holiday pay, particularly in sectors with irregular hours.
The FWA does not have enforcement powers over unfair dismissal, discrimination, or most claims under the Employment Rights Act 1996 itself. Those remain the responsibility of individual employees bringing their own claims through the employment tribunal.
The Power to Bring Claims on Behalf of Workers
One of the most significant features of the FWA is its power to bring employment tribunal claims on behalf of workers where it appears that the worker will not bring proceedings themselves. This is particularly important for vulnerable workers -- those in precarious employment, undocumented workers, or workers who fear retaliation -- who would not in practice bring their own claims.
The FWA can also issue compliance notices and financial penalties against employers who breach the relevant legislation. Employers who receive a compliance notice and fail to comply face escalating penalties.
Inspection Powers
The FWA has wide-ranging inspection powers. It can enter employer premises -- including homes used as workplaces -- require the production of documents and records, and interview workers and employers. These powers are sometimes described as dawn-raid style powers. Employers should ensure their payroll records, employment contracts, and working time records are in order.
What This Means for Workers
For most individual workers bringing their own employment tribunal claims, the FWA does not change the process. You still need to contact ACAS, complete the ET1, and manage your own case. However, the FWA provides an additional enforcement route for minimum wage underpayment and holiday pay issues -- you can report your employer to the FWA rather than, or in addition to, bringing your own claim.
If you believe your employer is underpaying the national minimum wage or failing to pay holiday pay correctly, you can report this to the FWA. The FWA can investigate, issue compliance notices, and in appropriate cases bring proceedings on your behalf. This is particularly useful where the financial value of your individual claim is small but the breach is systemic across a workforce.