The Fair Work Agency is a new UK government executive agency launched on April 7, 2026.
It’s designed to act as a ‘single enforcement body’ for employment rights to inspect, investigate, and enforce labour laws, including minimum wage, holiday pay, and tackling modern slavery.
It combines the functions of:
- HMRCs National Minimum Wage Team;
- The Gangmasters and Labour Abuse Authority (GLAA); and
- The Employment Agency Standards Inspectorate (EAS)
What is the purpose of the Fair Work Agency?
The Agency is responsible for assessing the following:
- Ensuring workers are being paid at or above the National Minimum or Living Wage (once unpaid time, deductions and uniform costs are also factored in)
- Ensuring employees are receiving the correct holiday pay, sick pay and other statutory entitlements
- Ensuring workers are receiving fair treatment and aren’t being exploited
- Ensuring employers are keeping accurate, up-to-date records, including payslips, contracts and right-to-work paperwork
- Ensuring businesses using agency workers, umbrella companies or labour providers have the right agreements in place
To assess compliance, the Fair Work Agency can ask employers to provide evidence at any time. That might include:
- Employment contracts, letters of engagement or written terms
- Payslips and bank statements
- Records of hours worked, such as timesheets, logs or rosters
- Wage documentation, like pay rise letters
- Communications with employees, including letters, emails and texts
- Meeting notes, termination letters and dismissal documents
- Company policies and handbooks
- Witness statements
- Medical certificates
What do Employers need to do?
To ensure they are compliant with the requirements set out by the Fair Work Agency (as above), employers must:
🔥Review pay calculations to ensure staff are paid at or above the correct National Minimum or Living Wage;
🔥Review pay calculations for holiday pay, statutory sick pay and other statutory payments;
🔥Ensure salary and holiday records are correct, easily accessible and stored securely. As of 6 April 2026, employers have a legal duty to maintain adequate holiday and holiday pay records for up to six years;
🔥Update employment contracts – every employee should have a written contract or statement of terms that reflects how they work and are paid, including part-time and casual staff;
🔥Review written policies – make sure you have up-to-date policies covering at least holiday, sickness, working time and the use of agency or temporary workers.
🔥Look at how concerns are raised – employees should know how to raise concerns about pay, holiday or treatment, and you should have a clear process for recording and following up on those concerns.
🔥Check agency and umbrella worker arrangements. If you work with agency workers, umbrella companies or labour providers, make sure written agreements are in place and that they’re meeting minimum pay and holiday requirements too.
🔥Brief your managers – Payroll, HR and people managers should understand what the Fair Work Agency is, which rights it enforces and what good record-keeping looks like in practice.
Our retained clients can be confident they have the required employment contract template and HR policies and procedures to ensure their compliance with the Fair Work Agency requirements.
If you have any concerns about your compliance with the Fair Work Agency requirements, please get in touch.
thehelens@complexhr.co.uk
