The Fair Work Agency (FWA) has successfully secured its first conviction under its enforcement powers, relating to the Gangmasters (Licensing) Act 2004.
The FWA was established in April 2026 under the Employment Rights Act 2025. It acts as a single state enforcement body for various areas of employment law including national minimum wage, the conduct of employment agencies, and the non-payment of Employment Tribunal awards. In time, it will also take on the enforcement of statutory sick pay and holiday pay.
FWA enforcement officers have the power to access and inspect workplaces. They are also able to request evidence of compliance with employment laws and issue civil penalties for breaching the law.
One of the areas that FWA enforcement covers is gangmaster’s licensing, taking over from the Gangmasters and Labour Abuse Authority.
A gangmaster is a person who supplies workers to sectors including agriculture, horticulture, food processing and shellfish (similar to the function of an employment agency). Under the law, they must hold a valid gangmasters licence to protect workers from exploitation. The case centred around the failure to obtain this licence.
In the case, heard before Coventry Magistrates’ Court on 15 July 2026, a guilty plea was entered. The individual had previously been investigated regarding their licence and had had it revoked in the past following an inspection by the Gangmasters and Labour Abuse Authority.
Handing down a guilty verdict, the court issued a fine of £1,000 was handed down along with an order to pay a victim surcharge of £400 and court costs of £85.
The court also imposed a 12-month Labour Market Enforcement Order (LMEO), requiring the non-compliance at issue in the case to be addressed. Failure to comply with the order could result in further enforcement action and penalties.
The FWA does not yet have the full remit of its powers and responsibilities. Eventually, it will also act to advise employees on their rights, assist them through tribunal cases and be able to bring claims against employers on behalf of employees.
