The Fair Work Agency – what it is and why it matters

The Fair Work Agency (FWA) is the UK’s new single enforcement body for worker rights and labour market compliance, launched on 7th April 2026.

In simple terms, it brings together multiple regulators to create a more coordinated approach to enforcement across the entire labour supply chain.

Enforcement under one roof

The FWA was introduced under the Employment Rights Act 2025 and consolidates the Gangmasters and Labour Abuse Authority (GLAA), the Employment Agency Standard Inspectorate (EAS) and the Office of the Director of the Labour Market Enforcement (DLME)

The new agency will also be responsible for enforcing National Minimum Wage, although to start with this will continue to be delivered by HMRC.

Whereas before, tax compliance and worker rights were treated separately, the FWA has the power to investigate both at the same time. This means that issues like PAYE compliance, holiday pay and statutory sick pay can all be reviewed under a single framework. It will cover areas including: 

• National Minimum Wage
• Agency worker protections
• Labour exploitation
• Statutory employment rights and pay 

What does this mean for recruitment agencies?

At its heart, the Fair Work Agency is designed to strengthen worker protection, improve support for those at risk of labour exploitation and ensure businesses operate fairly and transparently.

For recruitment agencies, it’s largely business as usual for now. The Government has been clear that the launch of the FWA is designed to be seamless, with no immediate disruption to existing processes or compliance requirements. The same delivery teams remain in place, and there’s no sudden change to obligations on day one.

Over time, enforcement is set to become more coordinated, comprehensive and visible. The creation of the FWA isn’t about new rules, it’s about how the rules are enforced.

A welcome development was the appointment of Neil Carberry OBE, Chief Executive of the REC, to the advisory board of the FWA. This gives the recruitment sector a prominent voice and a place at the table as the new system evolves. 

The FWA and umbrella companies

Under the Employment Rights Act 2025, umbrella companies are being brought within the legal definition of an “employment business”. As the FWA is responsible for enforcing employment businesses and labour providers, this brings umbrella companies within its enforcement scope.

For agencies, this reinforces the importance of choosing compliant, transparent umbrella partners, not just from a tax perspective, but across all areas of worker rights.

What’s next? FWA timeline

While the Fair Work Agency officially launched in April 2026, its full enforcement activity is expected to ramp up throughout 2026 and beyond.

As the framework beds in, we’re likely to see a gradual increase in investigations, guidance and coordinated action across the supply chain. The FWA’s remit may also evolve over time, with further clarity and potential expansion as labour market enforcement continues to develop. 

Useful links and information

From 7th April, services can be accessed at https://www.gov.uk/fair-work-agency

Fair Work Agency central contact number: 0345 161 6000

Existing numbers for GLAA, EAS and DLME will remain in use during the transition period.

For National Minimum Wage and employment rights advice, employers and workers should continue to contact ACAS: https://www.acas.org.uk/