November 2026
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This conference examined next steps for labour market enforcement following establishment of the Fair Work Agency and wider implementation of the Employment Rights Act 2025. Areas for discussion included the first phase of delivery of the FWA, new enforcement and compliance frameworks, National Minimum Wage changes, reform of the temporary labour market, regulation of agency work and umbrella companies, and the future for dispute resolution and trade union relations.
It brought stakeholders and policymakers together to assess priorities for labour market enforcement as the FWA begins operating and assumes responsibility for a wider range of functions and powers in accordance with its recently published Year 1: Delivery Plan 2026-2027. Discussion considered the development of the FWA’s operating model, approaches to balancing compliance support with investigation and sanctions, and implications of bringing together enforcement responsibilities previously exercised across multiple bodies.
The agenda also explored priorities for employers, agencies and workforce groups as reform to labour market regulation and employment rights takes effect, including changes to the National Minimum Wage, the Agency Work Regulatory Framework, and duties under the Employment Rights Act 2025, such as Statutory Sick Pay from the first day of sickness absence, expanded trade union right of access, and forthcoming reform relating to dismissal and re-engagement, and zero-hours and low-hours contracts. Delegates assessed how this - together with the forthcoming extension of employment tribunal time limits to six months - is likely to affect tribunal capacity and wider employment relations.
Role & responsibilities of the Fair Work Agency
Delegates considered the leadership, governance, resourcing and accountability arrangements needed for the first phase of FWA delivery, in addition to the priorities and performance measures outlined in the FWA Year 1: Delivery Plan 2026-2027.
Areas for discussion included:
- governance:
- organisational capacity and capability - service continuity during transition - how funding and resources can be directed - reducing system fragmentation
- development of the 2027/28 business planning cycle and three-year enforcement strategy
- operating model:
- approaches to balancing compliance support for businesses with investigation and sanctions - what proportionality and fairness looks like within a new system for enforcement
- delivery through improved data, tech and AI capabilities
- powers: integration of functions and powers inherited from existing enforcement bodies - preparations for extending state enforcement to additional employment rights
- holiday pay: changes to enforcement from April 2027 - looking ahead to the outcome of the Government’s consultation on holiday pay compliance and enforcement
- preparing for reform: effective practice for businesses, including smaller employers - access to tools, guidance and compliance support - managing transition costs and administrative requirements
Temporary labour market regulatory framework, accountability & worker protections
Sessions looked at the future regulation of agency work and umbrella companies in the context of the FWA having assumed responsibility for functions previously carried out by the Employment Agency Standards Inspectorate. The operation of new joint and several liability rules for PAYE in labour supply chains involving umbrella companies and the anticipated response from the Government to its consultation on modernising the Agency Work Regulatory Framework were also discussed, as will potential implications of proposals in the recently launched consultation on Employment Status Reform and Protections for the Self-Employed.
Attendees considered:
- new enforcement framework: approaches to application and responsibilities - supporting compliance across complex labour supply chains
- tax governance and liability:
- implications of new PAYE rules for agencies, umbrella companies and end clients - allocation of financial responsibility across labour supply chains
- due diligence, contractual arrangements and workforce planning
- wider labour market flexibility: maintaining flexibility while strengthening protections for workers - access to talented flexible labour for businesses - responsiveness of the market to evolving skills needs
- employment status:
- protections for self-employed, freelance and contracted labour - rights and access to work for those in the temporary labour market
- how a proposed presumption of worker status could support the Fair Work Agency in improving compliance with employment rights and addressing status misclassification
Labour market relations & dispute resolution
Further sessions explored implications of recent employment rights reform for workplace dispute resolution and collective employment relations. With enforcement responsibility for new Statutory Sick Pay measures expected to fall within the remit of the FWA, delegates assessed the interaction between enforcement activity, Acas conciliation and the employment tribunal system.
This included:
- reform: forthcoming increase to employment tribunal time limits for making a claim - further changes in 2027 to unfair dismissal, flexible working rights and zero-hours and low-hours contracts
- managing demand: potential ways forward for supporting earlier resolution of disputes - implications of wider tribunal reform
- enforcement: intelligence and data-led approaches to targeting activity - coordination between enforcement, conciliation and regulatory bodies
- modernisation: updating and streamlining regulations to reflect current working practices and reduce unnecessary administrative burdens
- coordination: practicalities for supporting effective relations between employers, trade unions, workers, Acas, EHRC, CAC and other bodies - public awareness of rights and obligations
- trade unions: implementation of new union measures, rights and responsibilities - workplace access arrangements - recognition processes - employer obligations under the new framework
National Minimum Wage enforcement
The agenda also looked at preparations for changes to National Minimum Wage, including approaches to identifying and addressing non-compliance, employer engagement and guidance, and the use of investigations, penalties and naming measures to support compliance.
Discussion considered:
- common areas of risk for employers: payroll practices - deductions - salary sacrifice arrangements - record-keeping requirements
- emerging lessons: assessing recent enforcement activity - priorities for strengthening confidence in the labour market enforcement regime
As well as key stakeholders those attending included officials from the Department for Work and Pensions; Department for Business, Innovation, Science and Trade; Ministry of Housing, Communities and Local Government; Department for Energy Security and Net Zero; Department of Health and Social Care; Department of Enterprise, Tourism and Trade, ROI; Department for the Economy, NI; HM Revenue and Customs; Home Office; National Crime Agency; the Welsh Government; and The Scottish Government.
