A further change being brought by the Employment Rights Act 2025 is the introduction of The Fair Work Agency (FWA) which opens its doors on 7 April 2026. The FWA is designed to bring some of the functions of multiple existing government bodies under one hat. In summary it will deal with:
- Underpayments of National Minimum Wage and holiday pay;
- Statutory Sick Pay non‑compliance.
- Other associated breaches of employment legislation.
The FWA will be able to respond to a worker’s complaint or may choose to do its own spot checks and inspections of a business and in doing so, will be able to require businesses to hand over relevant documents, such as payslips. In the case of a breach, it will be able to issue fines, notices and penalties to a business. However, the biggest change is that it will be able to bring an employment tribunal claim on behalf of a worker without them being involved while also offering legal assistance, support and representation to those who want to make claims.
What can employer’s do to prepare?
Good documentation is key, especially as there is every chance of more claims and scrutiny from the FWA. Ensure all staff are paid at least the current National Minimum Wage (which will increase on 7 April 2026) remembering that items such as uniform costs can push an employee’s pay below the threshold. Holiday pay should be correctly calculated where relevant including consistent accrued overtime, bonus and commission payments. In addition, absence recording systems and sickness policies should be up to date with statutory sick pay being paid from day one of sickness as of 6 April 2026.
While this may all seem intimidating, the FWA should also provide support to Employers to ensure they meet all their statutory demands. We can of course also help, so please do not hesitate to make contact if you need any documentation reviewing or further advice or assistance.
Employment Rights Act 2025: the Fair Work Agency factsheet
We are able to deliver training to you and/or your colleagues on any employment matters including the upcoming changes in employment law. If this is something you would like further information on, please contact us.
0161 312 1864