15 Apr 2026
You might not have heard of the Fair Work Agency yet. It arrived as part of the Employment Rights Act in April. While there is not much information out there, we know it will change how you handle your legal requirements.
Everything you need to know about the Fair Work Agency
The Fair Work Agency brings several different bodies together under one roof. It is part of the Department for Business and Trade and looks after basic employment rights.
Unlike old advisory bodies, this is an enforcement agency. They will not just trust that your records are correct; they will expect you to prove it.
What the agency can do
For the first time, an agency can take action without waiting for a staff member to complain. They have the power to:
Potential problems and why the agency was created
The old system was messy. Different groups looked at different issues, and most problems only came to light when a worker took a business to a tribunal.
The new agency wants to stop these issues before they get that far. They are looking for gaps in your processes that create risk for your business.
Why this matters for small businesses
You could face an inspection even if nobody has complained. If the agency finds a mistake, the results are serious:
The agency will likely look at pay and leave first. This is where many small firms make honest mistakes with holiday or sick pay calculations.
How to stay protected and follow the rules
1. Get your basics right
Make sure your contracts are up to date and your policies match how you actually work. You should be able to find and show these records quickly.
2. Check pay and holiday
This is a priority. Check that you are paying the correct minimum wage and that holiday pay for staff with different hours is calculated correctly.
3. Keep better records
Messy paperwork is a big risk. Keep your records for six years and try to use a digital system so everything is in one place.
4. Talk to your team
Make sure anyone handling payroll or managing people understands the basics of employment rights.
How an HR consultant can help
At Albany HR we have HR consultants in Glasgow, Edinburgh and across Scotland who can look at your systems and find any gaps before an inspector does. We can also get you set up with an easy to use HR System, Breathe HR, which will make your record keeping and holiday management easier. Get in touch and we can arrange a free trial for you.
We can help you get inspection ready so you can focus on running your business.
