In a snap poll, Breathe HR, who support over 17,000 SMEs across the UK to manage HR tasks and stay compliant, found that over a third (36%) of those handling HR in UK SMEs have never heard of the Fair Work Agency, which will be responsible for the enforcement of many employment rights from the 7th April 2026. A further 50% said that while they have heard about the new body, they only know a little about it.
HR experts suggest this points to a lack of awareness around the latest employment rights developments, and are warning employers that they are at risk of being fined if their HR policies and documentation are out of date or incorrect.
The warning comes as a wave of new workers' rights are set to come into effect in April. This includes changes to statutory sick pay, parental leave rights, collective redundancy rules, holiday record keeping and greater protections for sexual harassment whistleblowers.
It also follows the announcement last month that nearly 400 businesses have been issued penalties for failing to comply with minimum wage laws, totalling £12.6 million. National minimum wage rates changed on the 1st of April, and the Fair Work Agency will, from the 7th of April, be responsible for ensuring that employees are paid correctly.
Bharat Siyani, VP of People and Culture at Breathe HR, said:
“Previously, the enforcement of employment law was carried out by three separate entities: The Employment Agency Standards Inspectorate (EAS), The Gangmasters and Labour Abuse Authority (GLAA) and HMRC’s National Minimum Wage Team. With one body now in charge, the enforcement of workers' rights is likely to be more rigorous.
“From the 7th April, the Fair Work Agency will have the power to monitor and investigate companies' employment practices, fine employers who have breached regulations (for example, by underpaying their workers), and bring civil proceedings to an employment tribunal on behalf of an employee. They may also publicise the names of companies who have failed to meet employment rights standards.
“The Agency can ask businesses to provide evidence of compliance at any time. This could include employment contracts, pay slips, timesheets, rotas, pay rise and termination letters, or company policies and handbooks. So employers must be prepared. That means ensuring HR policies, contracts and records are up to date, reflect the latest employment legislation, and are easily accessible to the right people.”
Siyani recommends companies take the following key steps to stay compliant:
- Appoint a member of staff to monitor updates to employment law and flag changes that need to be made within the organisation to comply with them
- Ensure all contracts and probation policies are updated to reflect the current legislation
- Check you have written policies for holiday, sickness, statutory sick pay and working hours that reflect new employment rights
- Confirm that everyone is being paid at or above the correct national minimum or living wage, once you have factored in deductions
- Audit all your past holiday, overtime, working hours and pay records to ensure they are accurate
- Make sure letters and documentation related to employee queries, grievances and dismissals are organised properly
“Employers who hit all of these points will be in the best possible position to ensure they’re complying with new employment rights legislation and be prepared should the Fair Work Agency come knocking.”
To help businesses check that their employment records and policies are ready for the Fair Work Agency, Breathe HR has launched a free Fair Work Agency Readiness Quiz. The results help employers identify gaps in their HR policies and practices, so they can address them to ensure compliance with employment rights legislation.
Wendy Read, HR Director at Omny Group, who advise businesses on their HR and employment practices, said:
"The fact that over a third of SME employers haven’t even heard of the Fair Work Agency should be a wake-up call. We’re introducing a new regulatory body, yet the very businesses it will impact most are still in the dark. That’s not just a communication gap, it’s a systemic issue in how we support SMEs.
"In my experience, most founders and leaders want to do the right thing. They care about their people and understand the importance of fair work. But they’re time-poor, navigating constant change, and too often expected to interpret complex legislation without clear, practical guidance.
"If the Fair Work Agency is going to succeed, it can’t just enforce, it has to enable. That means cutting through the noise, speaking the language of SMEs, and providing support that is genuinely accessible. Otherwise, we risk creating fear and confusion instead of progress."
