10 July 2026
A new framework agreement has been published setting out how the Fair Work Agency (FWA) and the Department for Business and Trade (DBT) will work together to enhance the protection of workers’ employment rights and provide better support to businesses through a unified enforcement body.
The framework agreement:
- sets out the core responsibilities of the Fair Work Agency
- describes the governance and accountability framework that applies between the roles of DBT, the Fair Work Agency, and other parties
- explains how the day-to-day relationship between DBT and the Fair Work Agency works in practice.
The FWA’s core responsibilities are to:
- enforce employment and labour market legislation to protect workers’ rights
- provide a single point of contact for workers and employers on relevant employment rights
- promote compliance through education and engagement activities
- investigate employers for non-compliance with employment rights legislation
- provide state regulation of the Recruitment Sector
- apply appropriate and proportionate sanctions to non-compliant employers
- prevent perpetrators from exploiting workers and deter exploiters from reoffending
- act as a First Responder Organisation for the purpose of referring potential victims of modern slavery into the National Referral Mechanism
- support vulnerable workers in enforcing their rights
- conduct intelligence-led operations in high-risk sectors and where high-risk intelligence is received on cases falling outside of high-risk sectors
- recover unpaid wages and entitlements for workers
- lead strategic thinking and insight on labour market enforcement using stakeholder engagement including through the Advisory Board
- develop and implement strategic enforcement priorities through annual planning
- report to Parliament on enforcement activities and compliance trends
- collaborate with other government agencies on cross-cutting prevention, compliance and enforcement issues.
The Fair Work Agency enforces provisions in the Acts listed below as set out in Part 1 of Schedule 7 to the Employment Rights Act 2025:
- National Minimum Wage Act 1998
- Employment Tribunals Act 1996
- Employment Agencies Act 1973
- Gangmasters (Licensing) Act 2004
- Fraud Act 2006
- Modern Slavery Act 2015
- Social Security Contributions and Benefits Act 1992*
- Social Security Administration Act 1992*
- Social Security Contributions and Benefits (Northern Ireland) Act 1992*
- Social Security Administration (Northern Ireland) Act 1992*
- Working Time Regulations 1998*
- Employment Rights Act 2025*
*As part of the phased implementation approach, enforcement of provisions in these Acts will commence at a later date.
It is also important to note it has been previously confirmed in their Strategic Steer, that National Minimum Wage (NMW) enforcement will continue to be delivered by HM Revenue and Customs (HMRC) throughout 2026/27, while the FWA prepares for a full transfer of NMW responsibilities in April 2027. The Government has stated that the FWA must work closely with HMRC to develop an intelligent infrastructure that can manage seamless case management and risk-led enforcement. The Strategic Steer states that the FWA should have real-time access to HMRC systems to support this transition of NMW enforcement responsibilities.
The Secretary of State for DBT is legally responsible and accountable to Parliament for all matters concerning the FWA, including activities carried out by the FWA on behalf of the Secretary of State.
Under the framework agreement, the Secretary of State will set the overall direction and priorities for the FWA through strategic steers issued every three years and by approving labour market enforcement strategies. These strategies may identify sectors or employment rights issues that should be prioritised where evidence shows greater enforcement activity is needed.
However, the FWA will remain operationally independent. While ministers can influence the agency's overall priorities and approach to enforcement, they cannot direct the FWA to investigate, or not investigate, a specific employer or business.
Decisions on individual cases will be made independently by FWA enforcement officers based on the evidence and the law. This separation is intended to ensure impartial enforcement of employment rights, protect the integrity of the enforcement process, and provide fair treatment for both workers and businesses.
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