21/05/2026
What powers does the Fair Work Agency have?
“Open up, FBI FWA!” could in theory be the dramatic words you hear as this new national agency bangs on your workplace doors, Hollywood style.
The Fair Work Agency (FWA) is the Labour government’s new “workers’ rights police force”, and on paper it is powerful. In fact, it has some actual police powers enshrined into its constitution.
It has been well-documented that the FWA is an amalgamation of several established watchdog-type agencies. It will help the state by both streamlining governance and joining the dots between wrongdoing.
This means that it has enforcement duties in a wide range of areas including the national minimum wage, holiday and sick pay and modern slavery among other things.
That is the “why” and the “what” of the FWA, but in this article we will now focus on the “how”.
How will they enforce these areas? What powers do they have?
Workplace inspections – announced or unannounced: It’s thought that in most cases they will work with companies to make an arranged visit. But if they deem it necessary, they can make a surprise visit and demand entry (as per our introduction, perhaps).
Requesting/seizing documentation: Much like the police gathering evidence, they can request or seize a wide variety of documentation, depending on their focus. Employment contracts, pay slips, bank statements, time sheets, communication with employees and meeting notes could all be in their sights. Accurate record keeping is paramount.
Initiating employment tribunals: When they choose to, they can take you to a tribunal on behalf of a wronged employee, taking the pressure off the individual.
Imposing fines: If they identify wage underpayment (and other forms of pay like holiday pay) they can demand you repay the arrears within 28 days whilst adding a fine of up to 200% onto the total, capped at £20,000 per worker.
Recovering enforcement costs: In addition to the above fines and penalties, the FWA will be able to charge its enforcement costs back. This may be similar to the way the Health and Safety Executive does this, with a calculation based on an inspector’s time.
Legally mandating changes: The FWA can force employers to change behaviour, either by a voluntary agreement or a legally binding court order.
Name and shame: There is reputational risk too. As was the case before with underpaying the national minimum wage, you can be publicly named within a year of a case against you being closed.
Arrest: Agency officials will have the power to arrest people suspected of labour market offences.
Imprisonment: Failure to follow a court order or withholding documents can lead to a prison sentence.
Quite the array of enforcement actions! While it may sound daunting, keep this in mind: part of the aim of the FWA is to create a level playing field for employers.
So, if it is always your intention to treat your employees fairly, these tough actions may protect you as much as workers generally; as it should restrict the ability of rogue businesses to undercut you. If you want help with compliance, please contact us.
📩[email protected]
☎️0345 200 0031
