Employment law insights

Fair Work Agency

The Fair Work Agency will be established from 7 April 2026. The purpose of this agency is to consolidate enforcement functions currently spread across multiple bodies (for example the Employment Agency Inspectorate, HMRC National Minimum Wage enforcement). It is intended that the agency will have the power to:

  • Inspect workplaces and require production of relevant documentation;

  • Enforce compliance with key employment rights including the National Minimum Wage, holiday pay, SSP, and unlawful deductions;

  • Issue notices for underpayments;

  • Act on behalf of employees and workers by bringing certain cases before employment tribunals; and

  • Provide legal assistance to employees.

It is likely to take some time before the agency is up and running with its enforcement functions. However, when these enforcement powers are underway, one normal problem area for employers, which the agency will be able to address is holiday pay. Therefore, employers should consider reviewing their holiday pay systems now to ensure they are compliant.

In a surprise related move, it has been announced that, from 6 April 2026, all employers will face a new legal duty to keep detailed holiday and holiday‑pay records for every worker, and failing to do so can become a criminal offence…