UK Fair Work Agency launches April 7 with sweeping enforcement powers

The UK’s new Fair Work Agency will go live on April 7, 2026, merging the Employment Agency Standards Inspectorate, HMRC’s National Minimum Wage enforcement team, and the Gangmasters and Labour Abuse Authority into a single body with significant new powers.

The agency can bring employment tribunal claims on behalf of workers, enforce holiday pay obligations going back six years, and impose penalties of up to 200% of underpayments against non-compliant employers. This represents the most significant structural change to UK employment enforcement in a generation.

The launch comes alongside a major recruitment drive for 55 salaried employment judges, signalling the government expects a significant increase in tribunal caseloads as the Employment Rights Act provisions take effect. For remote workers and employers hiring across borders, the consolidated enforcement approach means compliance failures are more likely to be detected and penalised.