Employment Rights Act Policy explainer  launch of the Fair Work Agency, April 2026

The second wave of reforms is coming into effect in Great Britain in April 2026. From 7 April, the new Fair Work Agency brings together  enforcement of key employment rights into one place.

What is changing?

• The Fair Work Agency will consolidate enforcement of rights including National Minimum Wage, agency worker protections, and gangmaster licencing
• Over time, the Fair Work Agency will take on enforcement of additional rights such as holiday pay
• The agency will have powers to conduct investigations into employers, issues penalties and underpayment notices for statutory entitlements, issue Labour Market Enforcement Orders to require employers to correct unlawful practices, and bring employment claims on behalf of workers
• A statutory advisory board with business, trade union and independent representation will guide the agency

What do these changes mean for employers?

The Fair Work Agency will not create new legal obligations. However:

• Inspections and enforcement may operate differently
• Where employers go for advice and support will change

Employers can prepare for these changes by:

• Familiarising themselves with the Fair Work Agency’s enforcement policy statement (when published)
• Reviewing areas to be brought within the scope of state enforcement, such as SSP
• Understanding how to contact the agency if in need of guidance

If you have any questions about these changes, you can reach out to the IoD’s Information and Advisory Service at [email protected]. Full IoD members can access professional advice on HR issues and employment law as part of their membership.