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The 2025 Act steps up enforcement, with the new Fair Work Agency, stronger record-keeping duties and an extended window for tribunal claims.
Our latest reference table summarises the main enforcement changes employers need to know.
Central to the new regime is the Fair Work Agency (the FWA), a single enforcement body launched on 7 April 2026. Its remit is initially limited to a defined set of statutes, but it still brings day-to-day compliance obligations such as the national minimum wage firmly into focus. Holiday rules will move into scope in 2027, and statutory sick pay will also be brought into scope (with timing still to be confirmed). The FWA’s remit may expand further over time.
The FWA has wide investigatory and enforcement powers, giving the new regulator real teeth. How effectively it uses them, however, remains to be seen, and will depend in large part on the resources made available to it. The Government describes 2026/2027 as a transitional year of “enhanced business as usual”, during which the FWA is expected to maintain existing enforcement activity and help employers comply, including through guidance. Any enforcement action is intended to be proportionate, with prosecution reserved for the most serious cases. Nevertheless, employers should expect closer scrutiny and prepare accordingly, as explained in our latest reference table.
The Act also proposes to extend the time limit for tribunal claims from three months to six months, and introduces a new duty (already in force) to keep holiday pay records for six years.
Other resources
To access our previously published Employment Rights Act 2025 reference tables, follow the links below. We have updated them to reflect recent developments.
UK Employment Rights Act 2025: more secure work and basic employment rights
UK Employment Rights Act 2025: family-friendly rights and equality
UK Employment Rights Act 2025: industrial relations and trade union reform
For our dedicated resource hub, bringing together key insights, practical guidance and updates on UK industrial relations reforms, visit UK industrial relations reforms: what employers need to know.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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