If you’ve been keeping an eye on recent employment law reforms, you might have heard that a brand new regulatory body, the Fair Work Agency, is on the way. Set to launch in April 2026, the Fair Work Agency is being created as part of the government’s sweeping changes under the Employment Rights Act 2025. These reforms aim to modernise the workplace, boost protections, and create a simpler, fairer system for everyone.
So what will this new agency actually do? Who will it help? And why is it being introduced now? Here’s an easy to read breakdown for employers and employees.
Why Is the Fair Work Agency Being Created?
For years, enforcement in relation to employers has been split across multiple bodies, each with different powers and responsibilities. This has often caused confusion for workers seeking help and for employers trying to stay compliant.
According to government policy documents, the Fair Work Agency will act as a, “single place where workers and employers can turn for help”, bringing together key areas of workplace regulation from minimum wage compliance to tackling serious labour exploitation.
The Employment Rights Act 2025 is described as a major part of the government’s plan to, “Make Work Pay,” designed to reduce insecure work, make employment rights clearer, and give both employers and employees a more stable framework. The official government factsheet explains that the Act modernises protections and extends rights to millions more workers.
In short the Fair Work Agency is being created to simplify, strengthen, and streamline employment law enforcement.
What Will the Fair Work Agency Replace?
While the government has not labelled the Fair Work Agency as a direct replacement it will absorb and consolidate functions of several existing enforcement bodies. Based on current information, these include:
- National Minimum Wage enforcement functions, currently overseen by HMRC
- Employment agency standards, currently overseen by the Employment Agency Standards Inspectorate
- Gangmaster licensing, currently handled by the Gangmasters and Labour Abuse Authority
- Certain holiday pay enforcement powers that will be newly centralised under the Fair Work Agency
The aim of bringing these functions under one roof is to make enforcement more coherent and accessible. For employees, this means fewer dead ends and less confusion about where to go for help. For employers, it means clearer guidance and a single point of contact.
What Issues Will the Fair Work Agency Cover?
The Fair Work Agency will cover a wide range of employment issues, many of which tie directly into the new rights established under the Employment Rights Act 2025.
- Pay and Wage Compliance
This includes:
- National Minimum Wage enforcement
- Holiday pay compliance
- Ensuring fair, transparent handling of tips (a new obligation under the Employment Rights Act 2025)
- ZeroHours Protections
The Employment Rights Act 2025 will introduce new rights for workers on zero hours contracts. The full extent of these provisions is yet to be finalised and based on the government’s implementation roadmap they will be rolled out at some point in 2027.
- Enforcement Around Labour Exploitation
The Fair Work Agency will inherit powers currently held by the Gangmasters and Labour Abuse Authority to tackle serious labour exploitation and protect vulnerable workers.
- Workplace Practices and Agency Worker Protections
The agency will enforce rules relating to:
- Employment agencies
- Working conditions
- Fair treatment in outsourced environments
What Enforcement Powers Will the Fair Work Agency Have?
The Fair Work Agency will have significant enforcement powers, designed to make sure employers comply with the law and employees can confidently exercise their rights. Information already published shows that the agency will have the authority to:
- Issue penalties for breaches of employment law
- Bring tribunal claims directly on behalf of workers
- Inspect workplaces and gather information
- Share intelligence across government bodies to target noncompliance more effectively
These powers are a major upgrade from the fragmented enforcement system currently in place. The Fair Work Agency’s role is intended to be both supportive and robust, helping employers understand their obligations while taking strong action against improper behaviour.
How Will the Fair Work Agency Support Employees?
For workers, the Fair Work Agency should make navigating employment issues much clearer. Here’s how:
- A Single Port of Call
Instead of wondering whether to contact HMRC, the Gangmasters and Labour Abuse Authority, ACAS, or another agency, employees will have one place to go for help with issues around pay, working hours, exploitation, or agency work.
- Better Protection for Vulnerable Workers
The Fair Work Agency’s expanded powers mean stronger tools to tackle:
- Wage theft
- Unlawful deductions
- Forced labour
- Severe exploitation
- Greater Confidence in Exercising Rights
With the Employment Rights Act 2025 granting new rights employees will have a clearer pathway for asserting these rights.
How Will the Fair Work Agency Support Employers?
Employers often welcome clearer rules, and the Fair Work Agency aims to provide exactly that.
- One Regulator Instead of Many
A single enforcement body means less administrative complexity and fewer contradictory interpretations of the law.
- Clearer Guidance and Education
The Fair Work Agency is expected to issue practical guidance on topics such as:
- Zerohours obligations
- Holiday pay
- Agency worker rights
This should reduce the risk of accidental noncompliance.
- Fairer Competition
By cracking down on rogue employers who undercut competitors through unlawful practices, the Fair Work Agency will help to create a level playing field across sectors.
- Support During Transition tothe EmploymentRights Act 2025
The new Act is rolling out over two years, with changes affecting a number of key areas of employment law. The Fair Work Agency will help to bridge this transition period by offering support alongside existing bodies.
The Fair Work Agency marks a major shift in how employment rights are enforced in the UK. By bringing multiple enforcement functions together, it promises simpler processes, stronger protections, and a more modern approach to the workplace.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog Changes to minimum wage and statutory rates in April 2026.
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
