The Fair Work Agency: should HR be worried?

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The Fair Work Agency (FWA) officially launched on 7 April 2026, bringing together several existing employment enforcement bodies under one roof. Predictably, its arrival has generated concern among HR teams about increased inspections, tougher penalties and greater scrutiny.

But before anyone starts panic updating every policy in sight, it is worth remembering one important point – the Fair Work Agency does not create new employment rights. Instead, it changes how existing rights are enforced.

In this article, we explore what the launch of the Fair Work Agency means for employers, why compliance and record-keeping are more important than ever, and how HR teams can prepare for a new era of workplace enforcement.

What will the Fair Agency enforce?

Rather than creating new enforcement powers, the Fair Work Agency combines powers previously exercised by several separate bodies, including HMRC’s National Minimum Wage unit, the Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate.

Its remit already includes:

  • National Minimum Wage enforcement
  • Agency worker regulation
  • Modern slavery enforcement
  • Unpaid tribunal awards

And from 2027, it is expected to take on enforcement of:

  • Statutory Sick Pay
  • Annual leave and holiday pay

Why employers should review record keeping

For many employers, the biggest change is not the law itself it is the likelihood of more coordinated and proactive enforcement.

Historically, many breaches only came to light after an employee brought a tribunal claim. The Fair Work Agency is intended to work differently. It has investigatory powers, the ability to conduct inspections and the power to request extensive employment records.

Even employers outside traditionally “high-risk” sectors should not assume they are immune. Complaints from workers, poor record-keeping, or inconsistent practices could all attract attention.

The Government has described 2026–27 as a transitional period while the Fair Work Agency becomes fully operational.

That may buy employers some breathing space, but it also creates an opportunity. HR teams should use this period to identify weak spots before enforcement activity ramps up.

Compliance checklist for HR

Rather than treating the Fair Work Agency as a reason to panic, employers should see it as a prompt to revisit core compliance areas:

  • Payroll practices
  • Holiday pay calculations
  • SSP processes
  • Worker status
  • Record retention

The employers most likely to struggle under the new regime are not necessarily those acting deliberately unlawfully – but those relying on outdated processes, inconsistent practices or incomplete records.

Here to help

Our Employment team at Longmores helps employers review employment practices, policies and records to prepare for regulatory scrutiny and reduce the risk of enforcement action or claims.

If you need advice on auditing your employment practices or understanding how the Fair Work Agency may affect your organisation, please contact Miranda Mulligan, Senior Solicitor, in our Employment Law team.

Please note, the contents of this article are provided for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.