The Government has published its ‘Strategic Steer’ for the new Fair Work Agency (FWA) which was established on 7 April 2026 through the Employment Rights Act 2025.
The Policy Paper sets out the Government’s expectations for the FWA during its first year and the transitional arrangements for enforcement of key workers’ rights such as National Minimum Wage (NMW) and holiday pay.
From April 2026, the FWA has taken over responsibility for seeking compliance with the following:
- agency regulations
- gangmasters licensing
- serious labour abuse, including modern slavery (this function is shared with the police and National Crime Agency).
The FWA will not take over NMW enforcement until April 2027. During 2026/27, NMW enforcement will continue to be delivered by HMRC under a contracting arrangement with the FWA.
During its first year, the FWA has been tasked with focusing on five priorities to deliver a step change:
- reducing regulatory burdens
- intelligence and data
- public awareness and stakeholder engagement
- thought leadership
- preparing for 2027 and beyond.
The Government says the FWA should prepare to commence holiday pay enforcement in 2027 and set out a clear plan to expand enforcement to other rights.
The FWA is expected to publish its ‘Transitional Year Delivery Plan’ in response to the Government's Strategic Steer, followed by its first Statutory Enforcement Strategy in April 2027.
