The Fair Work Agency is still relatively new, and for many businesses, it remains an unknown quantity. We’re hearing from businesses across Coventry and the West Midlands preparing for an investigation or trying to understand what Fair Work Agency enforcement might mean for them.
At Tann Law Solicitors, we’re here to provide legal representation and compliance reviews for businesses either facing or preparing for an investigation. In this latest blog, we’ll explain what the process involves and shed light on how our friendly, Coventry-based legal experts can support you throughout the process.
What is the Fair Work Agency (FWA)?
Let’s start by exploring what the Fair Work Agency is. The FWA is the enforcement body launched by the UK Government in 2026 to safeguard the rights of workers, uphold fair competition and ensure employment laws are adhered to by employers.
As a body, the FWA is responsible for enforcing regulatory compliance pertaining to a range of employee rights. The FWA currently upholds National Minimum Wage compliance (UK-wide), regulates Employment Agencies in England, Wales and Scotland, administers Gangmaster Licensing (UK-wide) and works alongside ACAS.
Subject to consultation scheduled for April 2027, it will soon also be responsible for enforcing Statutory Holiday Pay and, in the near future, Sick Pay. In summary, the FWA has the power to:
- Unified Enforcement: The FWA consolidates previous bodies, including the Employment Agency Standards Inspectorate (EAS) and HMRC’s National Minimum Wage team.
- Proactive Investigations: The FWA has the authority to carry out spot checks on a business, even without an employee complaint being raised.
- Legal Action: The FWA is sanctioned to bring employment tribunal claims on behalf of workers who are unable, or even unwilling, to bring them themselves.
Occupational Health Assessment Limited survey (reported June 2026) found that 40% of senior HR professionals were unaware of the FWA’s remit and responsibilities. It’s little wonder then that there is still significant confusion amongst UK businesses regarding both compliance expectations and the potential ramifications of falling foul of an investigation launched by the FWA.
How might Fair Work Agency enforcement affect your organisation?
FWA enforcement refers to the legal and regulatory actions that the body is able to pursue. It holds extensive enforcement powers, including the authority to conduct investigations into organisations suspected of non-compliance, which may include in-depth workplace inspections and issuance of penalty notices where employers are found to be at fault.
If the FWA sees fit to carry out an inspection at your premises, the experience can be extremely disruptive and stressful, not least because you will be expected to produce, on demand, payroll records, contracts, annual leave and holiday pay records (retained for six years from 6 April 2026).
Why is it important to understand what’s expected of your business?
Following the launch of the FWA, all UK businesses, both large and small, now face increased scrutiny when it comes to breaches in employment law. It’s business-critical for key personnel within your business to understand both its legal obligations and the potential consequences of failing to adhere to legal regulations, which could include:
- Heavy fines and back-pay demands for wage or statutory payment errors, including penalties up to £20,000 per worker for minimum wage breaches.
- Tribunal Penalties may be imposed on employers who fail to pay employment tribunal awards or qualifying ACAS settlement agreements within the required timeframe.
- Director Disqualifications, which can be sought by the FWA as a result of severe or repeated violations.
In addition, Fair Work Agency enforcement action would almost certainly damage your business operationally and reputationally (the FWA actively publishes lists of non-compliant businesses and transgressors within a year of case closure).
How Can You Prepare for Fair Work Agency Enforcement?
Reviewing Your Compliance
Carry out your own pre-emptive audit
This should involve checking that all of your employees are being paid at least the current statutory minimum wage and confirming that your payroll systems are set up to automatically pay Statutory Sick Pay accurately from day one.
Check your records
Ensure that, if asked, you can produce accurate and up-to-date wage, hours and holiday records. From the 6th April, employers have been required to keep records of holiday leave and pay, including carry-over and pay in lieu, dating back at least six years.
Choose a compliance lead
A mistake that many SMEs in particular make is not having a dedicated individual to oversee compliance. Sometimes, each member of a team assumes that compliance is someone else’s responsibility, and it can fall by the wayside. Clearly nominating an individual or team to oversee compliance is the easiest way to avoid this.
Preparing for a Fair Work Agency Inspection
Cooperate with enforcement officers
Non-cooperation or providing false information can be treated as a criminal offence.
Nominate a point of contact
Ideally, this would be your compliance lead. This person should be responsible for managing communication and documenting any requests from FWA enforcement officers.
Seek legal counsel
We would always recommend that, in this situation, you seek advice from legal counsel of your choosing. A legal professional will be able to advise you on your rights and the best way to move forward.
How can Tann Law support you through Fair Work Agency investigations?
Whether your business is responding to an investigation or reviewing its employment law compliance, obtaining legal advice at an early stage can help you understand your obligations and make informed decisions.
We can help with:
Preparing for an FWA Investigation
Taking a proactive approach to compliance can help businesses identify potential issues before they lead to enforcement action.
Our team can assist with:
- Pre-emptive compliance audits to assess your compliance posture before an investigation is mounted.
- Robust record-keeping assessments to ensure your documentation is in order and you can evidence compliance.
- UK-wide specialist advice on specific areas, such as differing Modern Slavery Act regulations.
FWA Investigation Defence
If the FWA feel they have due cause to prosecute your organisation for non-compliance with Employment Law, our team can help you ensure you’re fully prepared, including:
- Helping you develop a comprehensive plan to manage and respond to all FWA information requests.
- Assisting you to gather and rigorously review any documentation requested.
- Formulating a robust legal defence against any legal challenges.
- Providing supportive representation should your case subsequently enter the appeal process.
If reading through this guide has raised questions about your organisation’s own compliance, a conversation with our employment law team may be beneficial.
We work with businesses across Coventry, Warwickshire and the West Midlands on exactly these issues, helping employers understand their obligations and respond effectively if the FWA comes knocking.
We’d be glad to help. Get in touch whenever you’re ready.