Fair Work Agency: How does this apply to Northern Ireland?

On 7 April 2026, the Fair Work Agency (FWA) became the UK’s single state enforcement body for core employment rights, established under GB’s Employment Rights Act 2025. The FWA is now up and running, and in this insight we explain what it does, the powers it holds, and what it means for employers in Northern Ireland.

The Fair Work Agency: What is it?

The FWA brings together functions previously handled by HMRC’s National Minimum Wage (NMW) team and other enforcement units. It has powers to investigate breaches, require payment of arrears, issue civil penalties and, in certain cases, take legal proceedings.

Parliament established the FWA through GB’s Employment Rights Act 2025 to strengthen state enforcement and eliminate duplication between existing bodies. As part of this, the Gangmasters and Labour Abuse Authority (GLAA) was absorbed into the FWA, creating a single, better-resourced agency capable of spotting patterns across sectors and stepping in earlier.

The agency went live on 7 April 2026 and is being built out in phases. Core areas such as NMW enforcement are active from the outset, with scope to expand into areas like Statutory Sick Pay (SSP) and holiday pay over time.

We wrote in detail about the FWA agency and its application in GB here.

The FWA's enforcement powers in practice

The FWA has broad enforcement powers. It can attend business premises, demand employment records (including pay, hours and holiday entitlements), and take copies. Employers are required to keep records of hours worked and holiday for six years, and the FWA can inspect these at any time.

Non-cooperation can carry serious consequences, including substantial civil penalties and, in more serious cases, criminal offences (including imprisonment) for employers, owners, managers and partners. With that in mind, businesses should consider having a clear response plan in place ahead of any FWA visit.

The FWA can also bring representative actions before Employment Tribunals on behalf of groups of employees (for example, NMW claims) - a route that trade unions may find particularly attractive. In addition, the FWA has the power to recover its investigation and enforcement costs from employers.

How and why this extends to Northern Ireland

In short, some FWA functions already apply in Northern Ireland because they stem from UK wide legislation (such as the National Minimum Wage) or from parity measures that align Northern Ireland's SSP rules with Great Britain. Others may follow in due course, as the Act allows the relevant Northern Ireland department to consent to adding devolved matters to the FWA’s remit. Here is a breakdown of the key areas:

National Minimum Wage

NMW is UK‑wide legislation, so enforcement has automatically transferred from HMRC to the FWA across the whole of the UK, including Northern Ireland. The FWA inherits HMRC's existing powers: investigations, Notices of Underpayment, arrears, civil penalties of up to 200% of arrears (capped at £20,000 per worker), and public naming. Appeals in Northern Ireland remain with the Industrial Tribunal. Importantly, this applies in Northern Ireland now, but no new penalty types or higher caps are in effect from the outset - any such changes would require secondary legislation.

Statutory Sick Pay

Westminster has aligned Northern Ireland’s SSP entitlement with Great Britain through legislation and, in the Employment Rights Act 2025, has designated specified Northern Ireland SSP provisions as falling within the FWA’s remit. This paves the way for UK-wide SSP enforcement by the FWA, including in Northern Ireland. However, this is not yet in effect - it will be implemented at a later stage.

Holiday pay

The position on holiday pay is less straightforward, as holiday pay and working time provisions are devolved to Stormont. The FWA will therefore only be able to enforce Northern Ireland holiday pay if, and when, the relevant Northern Ireland department consents and secondary legislation adds the Northern Ireland regulations to the FWA’s remit. Until then, holiday pay disputes in Northern Ireland remain a matter for the tribunal.

GLAA functions

Where the GLAA previously operated on a UK‑wide basis (for example, licensing in agriculture, horticulture and shellfish gathering), those functions in Northern Ireland have now transferred to the FWA.

Summary

The FWA now applies to Northern Ireland in a limited but carefully defined way. It has taken over existing UK-wide functions - principally NMW enforcement and gangmasters licensing and, in due course, SSP and holiday pay enforcement are expected to follow. There is also a built-in mechanism for the FWA's remit to be expanded to cover devolved Northern Ireland employment legislation in the future, subject to consent from the relevant Northern Ireland department.

With the FWA now operational and equipped with broad powers of inspection, significant penalties for non-cooperation, and the ability to bring representative claims, employers in Northern Ireland should be giving thought to their preparedness and considering how they would respond if the FWA arrived on their doorstep.