What is changing?
The Fair Work Agency brings together existing enforcement powers held by various enforcement bodies, as well some new additions. The agency has various powers, for example, the power to issue notices of underpayment and order penalties of up to 200% of the amount due (up to a maximum of £20k per individual).
The Agency is also be able to issue notices requiring individuals to provide information, enter premises, seize documents, bring employment tribunal proceedings on behalf of workers.
When is this changing?
Expected to take effect in October 2026.
How can I prepare?
- Review Compliance Systems
- Audit current practices around holiday pay, working hours, and leave entitlements — these are early enforcement priorities.
- Ensure contracts and policies align with statutory minimums and best practices.
- Training
- Ensure that manager and HR team understand the FWA’s role and how to respond to inquiries or investigations.
- Build internal capacity for early dispute resolution and proactive compliance.
- Strengthen Record-Keeping
- Maintain clear documentation of employment terms, pay, and leave.
- Prepare for potential audits or enforcement actions by the FWA.
- Engage Legal and HR Teams
- Stay informed on developments relating to the ERA