Following the establishment of the new state enforcement body, the Fair Work Agency (FWA) in April 2026, the FWA has begun contacting employers informing them of an inspection. We look at what employers should do to prepare for such an inspection.
What is the Fair Work Agency?
The FWA, which was set up under the Employment Rights Act 2025, is responsible for enforcing employment rights including national minimum wage, employment agency conduct, modern slavery, and gangmasters licensing. The FWA’s remit will expand further when it takes on enforcement of holiday pay during 2027 and Statutory Sick Pay (date to be confirmed).
Fair Work Agency inspections
Employers can be chosen for inspection to check for compliance with legislation within the FWA’s remit. FWA inspections can take place either pre-arranged or unannounced and either because a complaint has been made or prospectively i.e. where there has been no complaint. Employers will usually be notified of pre-arranged inspections by email, which will set out the documents that the FWA want to inspect and the timeframe for providing these to the FWA before the inspection. The types of documents that the FWA may ask to inspect include (but are not limited to) workers’ contracts, Key Information Documents and terms of business with clients.
How can we prepare for an inspection?
FWA enforcement officers may examine documents, require individuals to produce or explain records, and inspect premises. They may also check computers or other equipment used to process or store information. It is therefore important for employers to ensure that their HR records, such as pay details and working time records, and policies and contracts are easily accessible and up-to-date.
Enforcement Powers
Enforcement officers can issue notices of underpayment and require individuals to provide information. Officers are authorised to seize documents and may extend investigations to relevant labour providers or users, such as agency services. If employers obstruct officers or provide false documentation, this may be considered a criminal offence. Refusal to provide information, preventing access to premises, or hindering the removal of documents may lead to legal consequences, including prosecution.
Compliance
Employers should ensure that enforcement is taken seriously across the organisation, as non-compliance can lead to civil penalties, criminal investigations, or other enforcement actions like Labour Market Enforcement Orders.
Proactive measures, such as maintaining accurate records and adhering to employment law requirements, can help avoid issues during inspections. Employers should ensure that senior management are aware of the FWA’s inspection powers and know what to do if the organisation is chosen for inspection, with or without prior warning. Engaging with the FWA proactively if notified of an inspection is essential to ensure smooth cooperation and compliance.
By adhering to these practices and maintaining compliance with labour market legislation, businesses can effectively prepare for and manage FWA inspections.
