22/05/2025

THE FAIR WORK AGENCY: WHAT EMPLOYERS IN NORTHERN IRELAND NEED TO KNOW

What is the Fair Work Agency (FWA)?

The UK government is setting up a new enforcement body called the Fair Work Agency (FWA) as part of the GB Employment Rights Bill. This agency will bring together various enforcement functions under one umbrella to improve compliance with employment law.

Why Does It Matter for Employers?

One of the main roles of the FWA is to inspect compliance with employment regulations, starting with enforcing the National Minimum Wage (NMW).

Currently, HMRC handles NMW enforcement, including its well-known ‘name-and-shame’ policy for non-compliant employers. However, moving forward, the FWA will take over this responsibility—including enforcement in Northern Ireland, as NMW is not a devolved matter.

Other Areas of Enforcement in Northern Ireland

In addition to NMW enforcement, the FWA will also oversee enforcement in Northern Ireland of:

• Statutory Sick Pay (SSP), which is currently managed by HMRC.
• The Gangmasters & Labour Abuse Authority, which is currently enforced by the Department of Agriculture, Environment and Rural Affairs (DAERA).

Future Expansions

Discussions in a Committee for the Economy Meeting (19 February 2025) it was indicated that the FWA may expand its remit to include holiday pay enforcement—an area that currently lacks an inspection function.

If approved, this would create a new enforcement mechanism for holiday pay compliance, subject to future agreement between UK and NI government officials.

When Will the FWA Be Operational?

The FWA isn’t expected to be fully operational until late 2026. Meanwhile, the NI Department for the Economy has confirmed its plans to introduce the Good Jobs Bill to the Assembly in January 2026.

For further details, check out the Fair Work Agency Factsheet  and Committee for the Economy meeting notes.