The Fair Work Agency (FWA) (an executive agency of the Department for Business), is set to launch in April 2026 as part of the Employment Rights Bill. Its creation marks a significant shift in how employment rights will be enforced. Currently, enforcement of employment laws is fragmented across multiple agencies. The FWA will consolidate these functions into a single enforcement body, with the aim of making it easier for both workers and employers to navigate employment rights and responsibilities.
The agency will be responsible for enforcing a wide range of employment rights, including:
- National Minimum Wage and National Living Wage
- Holiday pay and statutory sick pay
- Protection against unlawful wage deductions
- Rights of agency and gig economy workers
- Prevention of modern slavery and labour exploitation
In addition to enforcement, the FWA will provide guidance and support to employers, helping them comply with employment laws and promoting fair work practices. It will also have strong investigatory powers, including the ability to conduct workplace inspections, issue financial penalties, and bring tribunal proceedings on behalf of workers.
The first chair of the Fair Work Agency will be Matthew Taylor CBE, appointed in October 2025. Taylor is best known for leading the Taylor Review of Modern Working Practices in 2016, which laid the groundwork for many of the reforms now being implemented. He currently serves as the Chief Executive of the NHS Confederation. Employment Rights Minister, Kate Dearden, has stated: ‘Matthew Taylor’s extensive experience will be vital in ensuring this new agency delivers real change for people who’ve been let down by poor employment practices for far too long.’