People Matter - May 2026
HR Dept
What powers does the Fair Work Agency have?
“Open up, FBI FWA!” could in theory be the dramatic words you hear as this new national agency bangs on your workplace doors, Hollywood style.
The Fair Work Agency (FWA) is the Labour government’s new “workers’ rights police force”, and on paper it is powerful. In fact, it has some actual police powers enshrined into its constitution.
It has been well-documented that the FWA is an amalgamation of several established watchdog-type agencies. It will help the state by both streamlining governance and joining the dots between wrongdoing.
This means that it has enforcement duties in a wide range of areas including the national minimum wage, holiday and sick pay and modern slavery among other things.
That is the “why” and the “what” of the FWA, but in this article we will now focus on the “how”.
How will they enforce these areas? What powers do they have?
Workplace inspections – announced or unannounced: It’s thought that in most cases they will work with companies to make an arranged visit. But if they deem it necessary, they can make a surprise visit and demand entry (as per our introduction, perhaps).
Requesting/seizing documentation: Much like the police gathering evidence, they can request or seize a wide variety of documentation, depending on their focus. Employment contracts, pay slips, bank statements, time sheets, communication with employees and meeting notes could all be in their sights. Accurate record keeping is paramount.
Initiating employment tribunals: When they choose to, they can take you to a tribunal on behalf of a wronged employee, taking the pressure off the individual.
Imposing fines: If they identify wage underpayment (and other forms of pay like holiday pay) they can demand you repay the arrears within 28 days whilst adding a fine of up to 200% onto the total, capped at £20,000 per worker.
Recovering enforcement costs: In addition to the above fines and penalties, the FWA will be able to charge its enforcement costs back. This may be similar to the way the Health and Safety Executive does this, with a calculation based on an inspector’s time.
Legally mandating changes: The FWA can force employers to change behaviour, either by a voluntary agreement or a legally binding court order.
Name and shame: There is reputational risk too. As was the case before with underpaying the national minimum wage, you can be publicly named within a year of a case against you being closed.
Arrest: Agency officials will have the power to arrest people suspected of labour market offences.
Imprisonment: Failure to follow a court order or withholding documents can lead to a prison sentence.
Quite the array of enforcement actions! While it may sound daunting, keep this in mind: part of the aim of the FWA is to create a level playing field for employers.
So, if it is always your intention to treat your employees fairly, these tough actions may protect you as much as workers generally; as it should restrict the ability of rogue businesses to undercut you. If you want help with compliance, please contact us.
Prioritising staff safety
Shoplifting, and particularly well-known retailers’ responses to staff intervening, have hit the headlines in recent weeks. Both Morrisons and Waitrose dismissed staff who broke company policy in the way they engaged with shoplifters.
Shoplifting is thought to account for £2 billion worth of crime a year at present – something that law-abiding consumers end up paying for through higher prices.
It presents a dilemma: while many people’s sense of natural justice calls for action, the corporate and personal risk of employees being harmed in an altercation is generally considered too high. People before property is the understandable logic.
There are a variety of anti-shoplifting tactics you may adopt if you have a retail business, including technological ones like CCTV/facial recognition and physical security like additional barriers.
We, of course, are focused on the role HR plays. And here we would promote two actions: staff training and a written policy. These are both about empowering staff to know exactly what they should and shouldn’t do.
Actions like developing observation skills, making credible witness statements, ensuring careful stock layout (with more valuable or nickable products made harder to reach) and conducting regular stocktakes… over direct confrontation with suspects, are the safest choice for you and them; no matter how much it sticks in the craw.
For help with either policies, training or both, please reach out to us.
And one final point on staff safety. Remember, soon to come into force (in October) is the new third-party harassment law which requires that you take ALL reasonable steps to prevent it. Training and risk assessments are an important part of this, and we can help with these too.
Dealing with rising fuel costs
We all now know far more about the Strait of Hormuz than we would wish, and particularly its influence over prices at the fuel pumps.
For businesses like those in logistics, it immediately (and obviously) adds to the cost base. A slightly greyer impact, though, is where staff drive their own cars for work, say care workers who get about in the community, and there will be many other examples.
You may already be having conversations with staff in this scenario, but if not, beware the extra cost they may be absorbing to perform their jobs for you. The longer it all goes on, the more likely it is you will need to have a conversation about it.
Less of a direct concern for you, but a worry for staff that commute by car to work is that their costs will have gone up too. A day a week working from home, encouraging a cycle-to-work scheme or lift shares could all be options for you to consider offsetting the cost to them without the need to reach into your pocket.
On the beach
Is your mind on the beach yet? Maybe not, but it probably is for some of your staff who have booked their summer hols.
As a manager, it is best to be prepared for an influx of holiday requests at this time. You could have too many people off at the same time, be down staff members who work term-time-only or people looking to take last minute time off when the weather is good (if it is ever good in 2026!).
Your annual leave policy will dictate how leave is allocated, first come-first served for example. Is your policy working for you?
If not, we can consult with you and prepare a new one which suits your business. And if you don’t have it already, talk to us about HR software that automates your annual leave admin, and let’s staff self-serve. Then you can get YOUR mind on the beach.
All hail International HR Day
May sees international days for Tuna, Turtles, Hummus, more seriously VE day… and we even have International HR Day. It was yesterday, in fact (May 20th, if you are reading this email on the day it is published).
So please forgive us a little ode to HR in small businesses: Our “fav-our-ite things”, Julie Andrews style:
Contracts and handbooks,
performance appraisals;
Advice Line and wages,
Calculatin’ your payrolls.
Policies, culture
Discipl’nary hearings
These are a few of our
Favourite things.
Having worked with SMEs for over two decades, we know all the competing pressures you are under. And that your staff can be the best and worst part of the business. That is why our mantra is “preventing people problems”. We tell you what you can do, not what you can’t.
On our Advice Line retainer we are only ever a phone call/email away. And we are happy to work with you ad hoc on a project basis too. Here when you need us.
League table for sickies
While we are at the business end of league seasons for many of the nation’s favourite sports, a health and safety firm recently published a national league table for a less wholesome activity: pulling a sickie.
Their calculations were based on Google searches relative to size of population of major cities for “how to pull a sickie”. It’s one league table you don’t want to be winning! Bristol claimed the dubious honour, down in the South West. The north of England and Midlands were well represented in the top five with Nottingham, York, Leicester and Hull hot on Bristol’s heels.
