The government has confirmed the appointment of the inaugural Advisory Board for the new Fair Work Agency, ahead of its formal launch on 7 April 2026.
The appointments mark a key step in the rollout of a centralised labour market enforcement body, bringing together multiple existing enforcement functions under a single structure.
A new enforcement body for employment rights
The Fair Work Agency has been created under the provisions of the Employment Rights Act 2025, with the aim of establishing a more centralised and proactive system of labour market enforcement. The current model has long been criticised for fragmentation, with different bodies operating separate regimes, priorities and enforcement approaches. The new structure replaces that with a single authority responsible for setting direction and coordinating enforcement activity.
The Fair Work Agency will consolidate several existing enforcement functions into one organisation, including the Gangmasters and Labour Abuse Authority, the Director of Labour Market Enforcement, the Employment Agency Standards Inspectorate and HMRC’s National Minimum Wage enforcement unit.
In practical terms, the Agency will oversee compliance across core areas of employment law, including minimum wage, agency worker protections, labour exploitation and wider workplace rights. The consolidation of functions is intended to enable consistent decision making, improved intelligence sharing and a more targeted approach to identifying risk across sectors.
The most significant change for employers is the move to a more proactive enforcement model. Enforcement activity has often depended on worker complaints or reactive investigations. Under the new framework, the Agency is expected to initiate action based on data analysis, sector risk indicators and patterns of non compliance, without waiting for individuals to come forward. This will materially increase exposure for employers. Pay practices, worker status, use of agency labour and record keeping are more likely to be assessed together rather than in isolation. Where issues are identified, the unified structure increases the likelihood that multiple breaches are investigated and pursued within a single enforcement process.
Advisory Board role and composition
The newly appointed Advisory Board will provide strategic input to ministers on the direction and priorities of the Fair Work Agency. It will work alongside Chair Matthew Taylor and Chief Executive Lisa Pinney.
The Board has been deliberately structured to include equal representation from independent experts, employer representatives and trade union figures. This balance is intended to ensure that enforcement strategy reflects a range of perspectives across the labour market, including business realities and worker protections.
The inclusion of senior figures from organisations such as the Recruitment and Employment Confederation, major employers and leading trade unions indicates that the Agency’s approach is likely to be shaped by both operational and policy considerations.
What the Fair Work Agency is expected to do
The Fair Work Agency is expected to take a more proactive role in enforcing employment rights, particularly in areas where non compliance has historically been more difficult to detect or address. This includes enforcement of minimum wage requirements, regulation of labour providers and employment agencies, and oversight of labour market exploitation risks. Bringing these functions together is intended to improve intelligence sharing and enable more targeted enforcement activity.
For employers, this may result in increased scrutiny, particularly where multiple compliance risks exist across pay, working practices and contractual arrangements.
Implications for employers and HR teams
The creation of a single enforcement body is likely to change how employment law risks are identified and managed in practice. A more coordinated regulator is better placed to identify patterns of non compliance and to pursue enforcement action across different areas simultaneously.
Employers should expect greater consistency in enforcement standards, alongside a potential increase in data sharing between enforcement functions. This may reduce the likelihood that issues remain isolated or undetected.
There is also a wider expectation that employers demonstrate active compliance, rather than responding only when issues arise. Record keeping, audit processes and internal reporting mechanisms are likely to come under closer attention.
Strategic direction and policy influence
The Advisory Board’s role in shaping the Agency’s strategy is significant. Its composition suggests that enforcement priorities will be informed by both labour market policy and practical workplace considerations.
This may influence how the Agency approaches issues such as labour exploitation, fair pay, and the balance between enforcement and employer support. Over time, it is likely to play a role in shaping guidance, enforcement focus and engagement with employers.
Timing and next steps
The Fair Work Agency is due to launch on 7 April 2026, with the Advisory Board now in place to support its early development. Further detail on operational priorities and enforcement strategy is expected following launch.
For employers and HR professionals, the immediate focus should be on reviewing current compliance practices in light of a more centralised enforcement model. Early attention to risk areas, particularly those relating to pay, worker status and agency arrangements, will be important as the new regime becomes established.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.
