Fair Work Agency: what small firms should know

A single state enforcement body now brings together minimum wage enforcement, the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority. Holiday pay and statutory sick pay are planned to come within its remit later, subject to further regulations.

Who it affects

All employers. Holiday pay and SSP — two areas small firms often get wrong — are set to come within state enforcement.

What changes

• One agency for minimum wage, employment agency standards and labour exploitation.
• Holiday pay and SSP enforcement planned to follow (no date published by GOV.UK or Acas, and no regulations found, as of 25 October 2026).

What to do

1. Keep holiday and SSP records in a form you could hand to an inspector.
2. Check pay for any staff close to the minimum wage after unpaid time (training, travel between jobs, uniform costs).

Documents to review

• Payroll SSP settings : Waiting days switched off from 6 April 2026; 80% of earnings cap applied below £154.07 a week; Absences of any length recorded so linking works.
• Holiday and holiday pay records : Entitlement, leave taken and pay recorded per person; Irregular-hours accrual (12.07%) shown where used; Kept for six years, including leavers.

Tick these off and export the dates to your calendar in the business plan tab.

Sources

1. S.I. 2026/323 — Commencement No. 2 Regulations
2. GOV.UK — Plan to Make Work Pay and Employment Rights Act: timeline update (updated 22 October 2026)
3. Acas — Employment Rights Act 2025 (updated 20 October 2026)

A summary for employers, not legal advice. Where a change depends on regulations not yet made, details may differ from this page.