Why the Fair Work Agency should prompt employers to review workplace practices

The creation of the Fair Work Agency marks an important shift in how employment rights are enforced in the UK. Established on 7 April 2026, the FWA brings together existing enforcement bodies and is expected to take on wider responsibility for overseeing and enforcing rights such as holiday pay and statutory sick pay. Its purpose is to provide a single point of contact for workers whose rights have not been upheld, while giving enforcement a more coordinated structure.

For employers, the message is not that enforcement risk has suddenly appeared; it’s that practices which have previously gone unchecked may be easier to identify as the new agency beds in. That makes now a sensible time to review the basics, especially where informal processes have grown over time.

Head of Employment, Simon Gilmour, says:

With the creation of the Fair Work Agency, employment law enforcement is likely to become more proactive with employers subject to more scrutiny and sanctions. However, businesses shouldn’t wait for the new body to be fully operational before reviewing their practices and, where necessary, improving current processes.

“For many SMEs, the biggest risk isn’t deliberate wrongdoing. More often, it’s the informal habits and processes that develop as a business grows, such as verbal agreements and exercise of discretion that were never written down, contracts and employee handbooks that haven’t been updated in years, holiday pay calculations that haven’t kept pace with case law, or payroll checks that haven’t had clear ownership or oversight.

“These issues can quickly create problems if, for example, an employee raises a concern or if records are examined by a more joined-up and proactive regulator, with data, and potentially greater use of AI, at its disposal.

“The reassuring point is that employers can take practical steps now to reduce legal risk. These steps include reviewing contracts and staff handbooks, checking payroll and holiday pay calculations, keeping clear records and helping managers understand basic employment rights; all of which can make a meaningful difference.

“This shouldn’t be seen as a reason to panic, but as an opportunity to act. Businesses that can clearly show how decisions are made, how staff are paid and how concerns are handled, will be better placed if questions are asked later, while those that can’t may face back-pay claims, enforcement action and reputational damage.

This is where preparation counts. Employers don’t need to overhaul every process at once, but they should be able to show how key decisions are made, how pay is calculated and where accountability sits.

The businesses that get ahead of this now will do more than reduce their legal risk. They will put clearer, fairer and more resilient working practices in place, giving employees and managers more confidence in how decisions are made.