08 April 2026
The UK Government has outlined its expectations for the newly created Fair Work Agency (FWA) as it begins its transitional year through to April 2027. The Strategic Steer forms part of the wider ‘Plan to make work pay’, which aims to raise living standards and support economic growth.
Previously, workplace rights have been enforced by multiple agencies, each with separate processes and points of contact. This often made it complicated for employers to know where to seek guidance and for workers trying to raise concerns. The new FWA aims to bring all of that together, creating a more streamlined system that is easier to navigate while reducing duplication.
From April 2026, it has been confirmed that the responsibility for securing compliance with the following legislation will be brought together under the FWA:
- Agency regulations
- Gangmasters licensing
- Serious labour abuse, including modern slavery (working alongside the police and National Crime Agency).
These functions have now been integrated under a single leadership structure and supported by a unified set of enforcement powers. The FWA has a unique opportunity to bring together partner regulators, civil society, business representatives, trade unions and academics to better understand labour market risks and develop practical proposals that promote best practice.
To ensure continuity of service, it has been confirmed that the 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. Throughout 2027 the FWA should ensure they have real-time access to HMRC systems to support this transition.
Alongside this, the Government has also asked the FWA to set out a clear plan to extend their enforcement of other rights and prepare to also begin holiday pay enforcement in 2027.
The Strategic Steer places strong emphasis on a digital-first, intelligence-led approach, using data to identify risks earlier and target enforcement where they are most needed. For employers and pay professionals, this should translate into more predictable compliance checks, clearer expectations, and reduced disruption.
A central theme focuses on reducing unnecessary regulatory pressure. The aim is to support the vast majority of employers who want to comply, while maintaining robust action against serious or repeat non-compliance. For payroll teams, this should mean clearer guidance, simpler processes, and greater clarity on what needs to be checked to ensure compliance.
The first transitional year will focus on laying the foundations: merging teams, streamlining processes, and building the systems the agency will need once it is fully operational. For employers and pay professionals, the main thing is to expect a gradual change, rather than sudden disruption, making this a good time to review current processes and audits to ensure alignment with the expectation of the new authority.
Alongside the work of the FWA, the Advisory, Conciliation and Arbitration Service (Acas) will continue to provide free, impartial advice and training to both workers and employers to help prevent, manage and resolve conflict quickly.
The formal response from the FWA to this Strategic Steer through its ‘Transitional Year Delivery Plan’ is expected soon. We will share an update as soon as it becomes available.
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