“The creation of the FWA marks a step change in the government’s attitude towards proactive enforcement of employment rights” said Hannah Jane Dobbie, head of HR consultancy at Azets.

“Many of the areas the FWA will enforce, such as Statutory Sick Pay, statutory holiday entitlement, and agency worker protections, are areas in which employers should already be complying. The consequences of non-compliance will become more serious from the spring of next year.”

The FWA’s new powers include the ability to enforce employers to pay workers for holiday and statutory sick pay (SSP). The agency will also be able to issue notices of underpayment to employers if employees have not received the payments, which can be backdated up to six years and must be paid within 28 days of being issued.

It will also be able to investigate employers it believes are not complying with employment law and will be able to enter a business’ premises, interview staff and check documents, computers and equipment.

Julie Gunnell, associate director of payroll growth at Azets, said: “The Fair Work Agency will have the authority to impose financial penalties, publicly identify employers who fail to comply, and represent workers in employment tribunal proceedings.

“It signals a major shift in how employment rights are enforced, and businesses should begin now to review their processes, including payroll processes around accuracy and compliance, to ensure readiness for the launch in April 2026.”

From April 1, the FWA will enforce the following key employment rights:

• Statutory Sick Pay
• National Minimum Wage (NMW) including entitlement to the NMW and record-keeping requirements
• Unlawful deductions from pay
• Statutory holiday entitlement and pay
• Agency worker protections
• Modern slavery, human trafficking, and forced labour
• Zero hour & low guaranteed hour contracts and the right to request more stable hours
• Gangmasters licencing
• Obligations to pay sums ordered by an Employment Tribunal or a conciliation agreement
• A new obligation to keep records demonstrating compliance with statutory holiday entitlement for six years