The Fair Work Agency (FWA) has taken over responsibility for the Employment Tribunal: Penalty Enforcement and Naming Scheme, which operates to enforce pay awards handed down by an employment tribunal (ET) or agreed via an Acas settlement. Failure to pay could result in a fine and inclusion on a “naming” list on the government website.
The scheme was delegated to the FWA by the Department for Business and Trade (DBT) on its establishment on 7 April 2026. Now, the FWA has published guidance on what to do when a respondent has failed to pay an ET award or Acas conciliation agreement (COT3).
To use the service, the guidance explains that a claimant must:
have an ET judgment (at least 42 days must have passed since it was sent to the claimant and the respondent)
have an Acas COT3 where the respondent has not paid by the agreed date.
The service can be used for awards and settlements made after 6 April 2016. Applications can be made either online or via the post.
If the FWA decides to act, it will send the respondent a warning notice. This informs the respondent they will be fined if they do not respond within 28 days. If they do not, a financial penalty may be issued, which is to be paid as well as the award or settlement already owed to the claimant.
The penalty is paid to the Government, not to the claimant, and is:
50% of the unpaid award
at least £100 and no more than £5000.
If payment is still not made, the claimant can ask a civil court to enforce the payment.
Since its establishment, the FWA has also taken over responsibility for seeking compliance with the following:
agency regulations
gangmasters licensing
serious labour abuse, including modern slavery (this function is shared with the police and National Crime Agency).
From April 2027, it will take over National Minimum Wage enforcement. Also in 2027, the Government says the FWA should prepare to commence holiday pay enforcement and set out a clear plan to expand enforcement to other rights.
