What can the Fair Work Agency inspect?
The Fair Work Agency (FWA) is the UK's new employment enforcement body, launched in 2025. It can inspect pay records, holiday pay, tipping compliance, and employment agency conduct. It has powers to enter your premises and demand documents.
Full answer
- HMRC's National Minimum Wage enforcement team
- The Employment Agency Standards Inspectorate
- The Gangmasters and Labour Abuse Authority (GLAA) licensing functions
What the FWA can inspect:
Pay records — They can demand to see payroll records, timesheets, and rotas going back 6 years to check National Minimum Wage compliance. Any underpayment must be repaid plus a 200% penalty.
Holiday pay — FWA can check that workers are receiving the correct holiday pay, including rolled-up holiday pay for irregular hours workers introduced properly from January 2024.
Tips and gratuities — Under the Allocation of Tips Act 2023 (in force October 2024), inspectors can check your tips policy, distribution records, and whether 100% of tips are being passed to workers.
Employment agency conduct — Agencies must hold FWA licences and comply with conduct regulations. Client businesses can be investigated too.
Zero-hours and irregular hours — With the Employment Rights Bill introducing new rights for zero-hours workers, expect FWA to inspect guaranteed hours offers and shift cancellation records.
- Enter your premises without a warrant (in some circumstances)
- Require access to records and documents
- Interview workers and managers
- Issue penalties and require repayment
If you receive an FWA inspection notice, do not ignore it. Seek advice immediately, gather your records, and ensure your documentation is in order.
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Related questions
What is the National Living Wage in 2026?
The National Living Wage applies to workers aged 21 and over. Rates are set each April by the government following Low Pay Commission recommendations. The April 2025 rate was £12.71/hour — check gov.uk or your ComplianceAlert dashboard for the confirmed April 2026 figure.
Do I need a written tipping policy UK?
Yes — since October 2024, the Allocation of Tips Act 2023 requires all employers who receive tips to have a written tips policy and share 100% of tips with workers. Not having one is a legal breach.
What records does the Fair Work Agency check in hospitality?
In hospitality, the Fair Work Agency focuses on pay records, rota and hours records, holiday pay calculations, tronc and tips distribution records, and zero-hours contract compliance. The sector is a priority for enforcement due to historically high rates of NMW non-compliance.