The Fair Work Agency has arrived.
Are you inspection ready?
| 7 April 2026 Fair Work Agency live |
Ongoing Proactive enforcement begins |
Up to 6 years Back-pay recoverable |
After more than 20 years advising business owners, directors and managers, I have seen enforcement bodies come and go. Some bark; few bite. The Fair Work Agency is different, and I would be doing you a disservice if I dressed it up as anything other than a serious shift in the regulatory landscape.
From 7 April 2026, this new body consolidated multiple existing enforcement agencies into a single, unified force with significantly expanded powers. Here is what that actually means when an inspector arrives at your premises.
This is not complaint-led enforcement
The critical point that many businesses have not absorbed yet is this: the Fair Work Agency does not need one of your people to raise a complaint before they investigate you. Enforcement is proactive. Your business could come under scrutiny even if your workforce is entirely satisfied. Practices that have quietly slipped for years may not withstand that level of attention.
Financial exposure is significant: penalties of up to 200% of underpayments, calculated on up to six years of arrears at current rates, per worker. That is not a risk you absorb. That is a risk you eliminate in advance.
What they will want to see on arrival
Holiday pay records that are accurate, auditable and cover the last six years. Keeping statutory holiday records is now a legal requirement, and failure to do so is a criminal offence. If you employ anyone on irregular hours or a part-year basis, I would prioritise reviewing their leave calculations today. This is where errors tend to cluster and where inspectors tend to look first.
Statutory sick pay records confirming that the three-day waiting period has been removed. From 6 April 2026, SSP applies from day one of absence. If your payroll system has not been updated, that needs to be your first call after reading this.
Employment contracts that reflect current rights. Inspectors will look for qualifying periods that no longer legally apply. Anything that contradicts day-one parental or paternity rights is a red flag. Handbooks need the same review.
A whistleblowing policy that explicitly covers sexual harassment as a qualifying disclosure. From 6 April 2026, this is a statutory requirement. A policy that predates that change is non-compliant on its face.
Modern slavery and agency worker compliance documentation, accessible and current.
The businesses that come to us after a problem has been identified always spend considerably more time and money than those who addressed their compliance position in advance. Do not be in that group.
The practical step
A compliance review costs a fraction of what remediation costs. THSP can work through exactly what the Fair Work Agency will look for in your business, close the gaps, and give you the confidence that comes from knowing your house is in order. Call me directly or contact the team, and we will get it arranged.
If you have any questions regarding this or any other HR and Employment Law matter, then ‘Ask Andrew’ via marketing@thsp.co.uk