Fair Work Agency Inspections Have Started – Is Your Business Ready?

Consensus HR | Hertfordshire, Bedfordshire & Cambridgeshire

The new Fair Work Agency (FWA) has begun its inspection activity, with employers being contacted about forthcoming visits and being told what employment documentation enforcement officers may wish to inspect.

For employers, this is another reminder of why HR compliance cannot simply be dealt with when something goes wrong.

The Fair Work Agency was established on 7 April 2026 under the Employment Rights Act 2025 and is responsible for enforcing a range of employment rights. Its current responsibilities include employment agency conduct, modern slavery and gangmasters licensing, with responsibility for National Minimum Wage enforcement due to transfer fully from HMRC from April 2027.

Inspections Can Be Announced – or Unannounced

Employers may be selected for an inspection to assess whether they are complying with legislation falling within the FWA’s remit.

Importantly, an inspection does not necessarily mean that somebody has made a complaint.

Inspections may be prearranged or unannounced.

Where an inspection is arranged in advance, employers will usually receive an email explaining what documentation the FWA wishes to inspect and the deadline for providing it.

The documents requested will depend upon the organisation and the reason for the inspection. For example, an employment agency could be asked to provide workers’ contracts, Key Information Documents and terms of business with clients.

What Can Fair Work Agency Enforcement Officers Do?

Employers should understand that an FWA inspection can involve considerably more than somebody simply asking to see a few HR documents.

They may also require information to be provided, issue notices of underpayment, seize documents where authorised and potentially extend an investigation to relevant labour providers or users.

This makes good record keeping increasingly important. Employment documentation should not only be legally compliant – it needs to be accurate, current, organised and accessible.

What Happens If a Business Does Not Cooperate?

This is an area employers should take particularly seriously.

Obstructing an enforcement officer or providing false documentation may constitute a criminal offence.

Refusing to provide information, preventing access to premises, failing to comply with instructions or hindering the removal of documents may result in enforcement action, potentially including prosecution, civil penalties, criminal investigation or Labour Market Enforcement Orders.

The message for employers is straightforward: do not wait until an enforcement officer arrives before checking whether your HR records are in order.

Would Your HR Records Stand Up to Inspection?

At Consensus HR, we regularly talk about being proactive rather than reactive when managing people.

An FWA inspection is a good example of why.

If the answer to any of those questions is “I’m not sure”, now is the time to check.

The Importance of Management Awareness

It is not enough for HR documentation simply to exist somewhere on a computer.

Senior managers and those responsible for employees need to understand the organisation’s HR processes and know where relevant records are held.

Businesses should also have a clear process for dealing with an inspection. If an enforcement officer attends unexpectedly, employees and managers need to know who should be contacted internally and who is authorised to deal with the inspection.

A confused response can make an already challenging situation significantly harder.

Preparing Your Business Now

The Fair Work Agency does not yet have the full range of enforcement responsibilities it is expected to have in the future.

That makes 2026 an important opportunity for employers to review their HR compliance before the enforcement landscape develops further.

At Consensus HR, we work with SMEs across Hertfordshire, Bedfordshire and Cambridgeshire, helping businesses ensure their employment documentation, HR policies and people-management processes are legally compliant and practically workable.

Our retained clients benefit from ongoing HR and Employment Law support, helping them remain proactive as legislation and employer responsibilities change.

If you are unsure whether your HR documentation would withstand scrutiny, we can undertake an HR review and identify areas that may need attention.