12 May 2026
A research project commissioned by the Director of Labour Market Enforcement (DLME) to assess the scale, patterns and forms of labour market non-compliance in the UK, has published its findings on the Fair Work Agency (FWA) website.
The DLME’s functions were transferred to the FWA in April 2026 and as such the report, Working Lives: the scale and nature of labour market non-compliance and other work-based harms in the UK, is highly relevant to the FWA’s future policymaking and development of its first strategy, set to be published in early 2027.
The report used a mixed methods approach, combining a new and bespoke representative survey with qualitative interviews and focus groups, providing a robust evidence base on worker experiences.
The most striking finding is the scale of non-compliance. Around one in seven workers in the UK have experienced at least one breach of employment law within the enforcement areas studied.
The report identified several main types of harm including:
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financial harms such as underpayments, unpaid work and unlawful deductions
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administrative violations, including missing payslips or unclear employment terms
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health and safety risks
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mistreatment at work such as bullying, harassment or intimidation.
These categories show that worker harm includes a wide range of everyday issues that affect income, security and wellbeing, and is not limited to extreme cases of exploitation across the labour market.
The findings also highlight that non-compliance ranges from unintentional administrative errors through to deliberate exploitation. This has important implications for enforcement. The FWA is expected to adopt a more balanced approach between support for accidental non-compliance and punishment for those employers who constantly and deliberately break the rules.
The FWA has also confirmed they want to ensure that workers and victims of labour exploitation understand their rights, know how to access support, and raise concerns. By tackling non-compliance more effectively, the FWA aims to ensure that improvements in employment rights translate to real world outcomes for workers.
Do not wait for enforcement action. The creation of the Fair Work Agency and the findings of this report signals a more proactive and targeted approach. Employers should act now to ensure full compliance. This means reviewing pay practices to guarantee that all workers are paid accurately and on time, checking that contracts, payslips and employment terms are clear and correct, and ensuring workplaces meet required health and safety standards.
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