Employment Rights Bill – the Fair Work Agency and it’s powers

28 March 2025

The Employment Rights Bill ‘the Bill’, will create a new enforcement agency, said to be called the Fair Work Agency ‘FWA’.

Currently, employees must choose to present a claim to the Employment Tribunal; however, this principle is under threat.

The FWA, a Government funded body, will be able to bring Employment Tribunal claims on behalf of workers, even if the worker chooses not to.

Initially the FWA is set to cover areas, some of which are already covered by exiting enforcement agencies, such as rules on employment agencies and employment businesses, national minimum wage rights, statutory sick pay, statutory holiday pay, modern slavery offences and financial penalties for failing to pay sums ordered by an Employment Tribunal or COT3 agreement.

The Bill will also provide the Government the power to add to the list of rights that are covered by the FWA.

The FWA will be provided extensive powers some of which include powers to enforce failures to pay certain statutory payments to workers, powers to issue notices for provision of information, powers to enter business premises to examine documents and new criminal offences that can apply to all breaches of employment rights covered by the FWA.

The Employment Rights Bill marks a significant shift in workplace enforcement. If you’re unsure how these changes might affect your business, contact Backhouse Jones for expert legal advice.