The launch of Fair Work Agency is nothing to fear for reputable employers, according to the team at Corsham-based firm KR HR & Training Consultancy.
This new executive agency of the Department for Business and Trade which opens on 7 April 2026 aims to create a level playing field, so employers who do the right thing are not undercut by those who do not.
An estimated 900,000 UK workers per year have their holiday pay withheld, worth around £2.1bn (£2,300 each) , and around one fifth of the lowest paid workers were underpaid the minimum wage in 2024 .
By being able to inspect compliance with employment legislation and take action on behalf of employees, rather than relying on individuals to bring claims against their employers, the Fair Work Agency aims to crack down on those employers who do not play by the rules. These powers will be implemented in stages, bringing together many existing enforcement regimes and strengthening the ability to act.
“The creation of the Fair Work Agency is not about a change in the rules. It is about employers being able to show they have followed the rules,” comments Kathryn Fairlie, Director at KR HR & Training Consultancy. “Accurate recordkeeping will be key to demonstrating compliance. In preparation, we have been supporting many local employers to move away from paper-based systems or spreadsheets by implementing cloud-based HR software that streamlines administration and makes compliance and auditing a breeze.”
The introduction of the Fair Work Agency is part of a raft of changes being introduced in April 2026 and beyond by the Employment Rights Act 2025 (ERA).
Other related changes under the ERA affecting employers this month include (among other things) changes to Statutory Sick Pay, family leave, whistleblowing protections and a requirement to keep detailed records of annual leave calculations. The team at KR HR & Training Consultancy recommends that contracts, policies and procedures are updated and line managers are trained about the changes and how to handle people-related scenarios with confidence.
For further information about the Fair Work Agency, see the government factsheet available online at https://assets.publishing.service.gov.uk/media/696126a5d6532b76df7dcd75/fair-work-agency-factsheet.pdf
Find more details on the Employment Rights Act changes and implementation roadmap here: https://krhrconsultancy.co.uk/timeframe-for-implementing-the-employment-rights-act/
Photo credit – Barbara Leatham
