From 7 April 2026, the UK’s new Fair Work Agency (FWA) will begin operating as a single labour market enforcement body.
For agricultural businesses, many of which already navigate seasonal labour pressures, visa compliance for foreign workers, and tight economic margins, this marks a regulatory shift which will significantly affect the sector.
In this article, our Agriculture Lawyers detail the proposed changes and highlight what agricultural businesses can do to prepare.
What Is the Fair Work Agency?
The FWA will consolidate and strengthen existing enforcement functions previously split across bodies, such as:
- HM Revenue & Customs (National Minimum Wage enforcement)
- Gangmasters and Labour Abuse Authority (labour exploitation in high-risk sectors, including agriculture)
- Employment Agency Standards Inspectorate (employment agencies' compliance)
The government’s aim is to create a more proactive, robust and better-resourced enforcement regime and, significantly, will move from compliance-led investigations to targeted inspections.
Why Agriculture Is in the Spotlight
Agricultural businesses are likely to face particular scrutiny by the FWA due to the sector’s:
- Heavy reliance on seasonal and migrant labour
- Use of labour providers and employment agencies
- Piece-rate or output-based pay models
- On-site accommodation arrangements
- Long or irregular working hours during harvest
Issues such as national minimum wage compliance (including travel time and deductions), holiday pay calculations, statutory sick pay compliance, agency worker rights and modern slavery considerations are likely to be key areas for inspection by the FWA.
The FWA is expected to impose penalties of up to 200% of arrears for financial breaches.
The FWA is also expected to continue “naming and shaming” non-compliant employers, which carries reputational risk for businesses in the sector.
What Will Change in Practice?
More Proactive Inspections
Historically, compliance issues have not been proactively investigated, and authorities typically waited for complaints before taking action. The FWA however are expected to adapt a new approach, using sector-based risk profiling, unannounced inspections, reviewing of employee/worker payroll data in addition to directly consulting with workers in order to ensure a more robust approach to employee/worker compliance.
Greater Data-Sharing
One of the proposed structural changes behind the FWA is improved coordination across compliance areas compared with the previous enforcement bodies.
It is anticipated that stakeholders (including major buyers and customers) will in turn demand enhanced compliance assurances from agricultural businesses due to:
- Tax data, visa data and wage enforcement information likely becoming more readily available
- Further increased visibility as to regulatory and legal compliance
Practical steps
It is fundamental that agricultural businesses now take appropriate steps to ensure compliance before the FWA conducts an unexpected audit.
From a wages perspective, employers should pay close attention to workers with deductions agreements and accommodation offsets. It will also be necessary to consider workers’ travel time in the context of national minimum wage and for piece-rate workers, to ensure that the business is compliant with minimum wage requirements.
Holiday pay can also prove problematic. Agricultural employers should now review business practices to ensure compliance with complex irregular hours, holiday pay rules and in addition, how and when rolled-up holiday pay is utilised.
Similarly, for employers who utilise agencies for the provision of workers, it will be prudent to now review any third-party contracts (in particular the warranties and indemnities contained within them) to ensure compliance.
Finally, to limit exposure, it is necessary to ensure managers of agricultural business are mindful of the increased emphasis on good governance. Informal working arrangements with workers should be discouraged, as should any ad-hoc contractual amendments.
Clear and comprehensive record keeping for all workers will be fundamental, with training identified and conducted for managers where necessary.
Strategic opportunity
Whilst the introduction of the FWA introduces significant additional risks for businesses that fail to comply with their regulatory and legal obligations, it provides an opportunity for those businesses that are compliant.
Agricultural businesses that demonstrate transparent compliance, protect worker welfare and maintain robust audit trails, for instance, may gain a competitive advantage in supply chains increasingly focused on ESG, ethical sourcing, and reputation.
In a tight labour market, compliance can also be used as a recruitment tool. Workers are more likely to return to farms with strong governance and fair treatment reputations.
Concluding thoughts
In the context of imminent wider employment reform the introduction of the FWA is a timely reminder of the importance of good governance and compliance.
If you’d like to discuss how we can help your business prepare in light of these changes, please do not hesitate to contact our specialist team.
Need advice on the Fair Work Agency changes?
The introduction of the Fair Work Agency will bring increased scrutiny for agricultural businesses, particularly those relying on seasonal labour, agency workers and complex pay arrangements. Taking proactive steps now can help reduce risk and ensure your business is fully compliant before inspections begin.
If you would like advice on preparing your business for the new enforcement regime, our specialist Employment team would be happy to help.
0161 941 4000
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