The Fair Work Agency (FWA) is a new government enforcement body being created under the Employment Rights Act 2025, and its role is simple in theory but powerful in practice: pull scattered enforcement teams into one place and give workers stronger backing when things go wrong.

It will have the authority to chase up unpaid statutory entitlements, start employment tribunal claims on behalf of individuals, and even provide legal support or representation where needed. In other words, employees won’t always have to stand alone if there’s a dispute.

What makes this a big shift is the consolidation. Responsibilities that used to sit across multiple organisations, like HMRC and the Gangmasters and Labour Abuse Authority, are being rolled into a single agency with broader reach and sharper powers. For employers, it means fewer gaps between regulators and far less room for issues to slip through unnoticed.

A key change is that the FWA won’t always wait for workers to take action themselves. If an employee decides not to move forward with a claim, the agency can step in and take the employer to tribunal on the worker’s behalf. Any financial award would still go directly to the employee if the complaint is upheld.

Minimum wage inspections are already becoming more common, and that momentum is expected to continue once the new agency is live. The challenge for many businesses is that non-compliance isn’t always intentional. Pay structures, overtime calculations, and entitlement rules can quickly become complex. Accurate, up-to-date record keeping will be critical, not optional.

That said, how effective the FWA ultimately becomes will depend on its funding and staffing levels. With strong resources, it could act as a proactive regulator that prevents issues before they arise. Without them, it risks becoming a body that mainly reacts to complaints rather than driving real change.