The FWA is an Executive Agency of the Department for Business and Trade, created to consolidate enforcement under one roof. Previously, enforcement was fragmented across multiple bodies such as: 

• HMRC’s National Minimum Wage Unit (enforces minimum wage) 

• Employment Agency Standards Inspectorate (regulates agencies) 

• Gangmasters and Labour Abuse Authority (licensing for some defined non-screen sector businesses) 

• Director of Labour Market Enforcement (strategic oversight) 

The FWA absorbs all of these functions and operates as a single, recognisable brand with unified strategy and leadership. Think of it as an equivalent to the Health and Safety Executive, one organisation with clear powers and a mandate to enforce the rules. It aims to support businesses who want to comply with the law (providing guidance and advice), but will take tough action against those who deliberately exploit those that work for them. 

Many people who work as ‘freelancers’ in film and TV, actors, crew, lighting designers, DOPs, other creatives, may actually be ‘workers’ in legal terms, even if they’re paid through self-employment or limited companies and even if you and they consider the relationship ‘freelance’. 

An actor on a long-running series, or a DOP brought in exclusively for a production and taking creative direction, may well be a ‘worker’ (or even an employee), not genuinely self-employed, even if they invoice through a loan-out company.  

The FWA’s remit varies depending on the legal status of the person doing the work. As well as enforcing employees’ rights, it may focus on worker specific protections such as guaranteed hours or reasonable notice of shifts. 

It has no jurisdiction over genuine freelancers but has a specific mandate to tackle “bogus self-employment.” This is where a business labels someone a “freelancer” but the FWA determines they are legally a “worker” and the FWA may step in to enforce their rights retrospectively for up to 6 years. 

The Act gives the FWA a comprehensive set of enforcement powers, based on existing enforcement bodies but expanded to cover its broader remit: 

Workplace inspection powers 

FWA enforcement officers can enter workplaces to inspect records and require businesses to produce documents and evidence demonstrating compliance with the law. This is similar to current minimum wage inspection powers but applies across the FWA’s full remit. 

Civil penalty regime (Notices of Underpayment) 

Where enforcement officers find that businesses have underpaid those that work for them (e.g. below minimum wage, or failing to pay statutory sick or holiday pay where applicable), they can issue a Notice of Underpayment. 

This requires the business to: 

• Pay individuals what they’re owed, and 

• Pay a penalty to the Government 

Power to bring tribunal proceedings on employees and/or workers’ behalf 

The FWA can take cases to Employment Tribunal on behalf of employees or workers in the areas it covers, and can offer legal advice and assistance to people involved in employment or trade union law cases. It can also help recover unpaid tribunal awards. This removes the burden from individuals having to navigate the employment tribunal system alone, which should make enforcement more accessible for vulnerable workers who might otherwise struggle to navigate the system. 

Labour Market Enforcement regime (criminal offences) 

For serious breaches involving labour market criminal offences, the FWA can issue: 

• Labour Market Enforcement Undertakings (these are voluntary agreements where employers commit to correcting their behaviour); or 

• Labour Market Enforcement Orders (compulsory orders that require compliance) 

• Breaching a Labour Market Enforcement Order is a criminal offence that can result in fines or imprisonment. This is serious stuff, aimed at rogue employers who deliberately flout the law. 

Cost recovery powers 

The FWA can charge businesses to recover the costs of enforcement action taken against them. The details will be set out in future regulations. 

From April 2026 (Phase 1): 

• National Minimum Wage 

• Agency worker protections 

• Gangmaster licensing standards 

• Certain aspects of the Modern Slavery Act 2015 

Later stages (dates to be confirmed): 

• Holiday pay 

• Statutory Sick Pay 

• Other employee and worker rights (there’ll be a flexible power for the Secretary of State to expand the FWA’s remit as new challenges emerge) 

More unified, stronger enforcement 

Previously, if you were confused about compliance with workplace rights, you might have needed to contact several different agencies. Now there’s one place to go. That’s helpful but it also means the FWA has more resources and clearer strategic focus than the previous fragmented system. 

Holiday Pay and Statutory Sick Pay enforcement coming 

Research shows that around 900,000 people per year have holiday pay withheld (worth around £2.1 billion) in the UK; and more than 1 in 10 of the lowest-paid report receiving no paid holiday at all. 

When the FWA takes on holiday pay and SSP enforcement, businesses that haven’t been paying these correctly risk inspection, penalties, and having to make back-payments to employees and workers. Given the prevalence of short-term contracts and complex working arrangements in screen industries, this is an area to get right. 

Minimum wage enforcement 

The Low Pay Commission estimates that just under 20% of people paid at or around the minimum wage floor were underpaid in 2024 (around 371,000 jobs). The FWA will continue and strengthen minimum wage enforcement. If you have employees or workers on or near minimum wage (runners, junior assistants, etc.), make sure you’re calculating this correctly, including for things like unpaid travel time or required uniform costs that can push effective hourly pay below the minimum. 

Agency workers (i.e. those supplied to you by a recruitment agency or employment business. The agency is their employer (or engages them), but they work under your supervision and direction). If you use agency workers, the FWA will enforce agency worker protections. This includes ensuring agencies comply with regulations around terms & conditions, pay between assignments, and not charging workers fees. 

Cost recovery 

If the FWA takes enforcement action against your business, you may have to pay not just penalties and back-pay, but also the FWA’s costs of investigating and enforcing. This could make non-compliance very expensive. 

Audit your compliance now 

Review your practices around: 

• Minimum wage calculations (including unpaid time, deductions, etc.) 

• Holiday pay calculations, especially where irregular hours are worked 

• Statutory Sick Pay compliance 

• Guaranteed hours

• If you use agencies, make sure that they’re properly regulated and treating those they supply to you correctly 

Keep good records 

The FWA has powers to inspect records. Make sure you’re keeping clear documentation of: 

• Hours worked 

• Pay rates and calculations 

• Holiday taken and paid 

• Sick leave and SSP payments