
For the first time in the UK, holiday pay enforcement is a matter for the state.
The Fair Work Agency launches around 6-7 April 2026, merging the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority, and HMRC's National Minimum Wage enforcement into a single body (Employment Rights Act 2025). One of its most significant powers: it can pursue holiday pay underpayments without waiting for a worker to complain.
The look-back window is six years. Penalties can reach 200% of any underpaid amount. It can investigate on its own initiative.
For umbrella companies and agencies with complex pay arrangements across multiple clients and assignments, even small calculation errors can accumulate quickly.
#FCSA #FairWorkAgency #HolidayPay #Compliance #EmploymentLaw #UmbrellaCompanies

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