Employment Rights Bill | Single Enforcement Body

A new Labour Market Enforcement Body, the Fair Work Agency, will consolidate and strengthen enforcement of workplace rights, including minimum wage, sick pay, and holiday pay compliance.

January 2026 Update - Confirmed finalised rules on single-enforcement body

The Act has finalised, and it has substantially increased the remit of the single enforcement body. The final rules on the Fair Work Agency (FWA) powers and remit include:

• Collating existing enforcement functions, which will include national minimum wage, sick pay, labour exploitation, modern slavery and adding holiday pay enforcement.
• There are powers to add in additional functions in future. The body has the following powers:
  • Enter premises (including homes)
  • Require information.
  • Enforce failure to make statutory provisions and holiday pay.
  • Powers to impose penalties.
  • Ability to bring a tribunal claim relating to any employment claim on behalf of the individuals, and;
  • Offer legal support in civil proceedings (guidance to be published covering how this power will be exercised)
  • The body will cover the regulation of umbrella companies.
• ETA April 2026.

Tribunals are still significantly backlogged and the introduction of the new enforcement body, will help alleviate this pressure. The FWA will also be able to recover its enforcement costs, which will go towards self funding.