The Fair Work Agency launched on 7 April 2026, combining several enforcement bodies including the Employment Agency Standards Inspectorate. It can inspect workplaces, investigate without a complaint, issue penalties and bring tribunal claims for workers. FM employers using temps should check agency compliance, keep six years of holiday records and make sure sick pay rules are applied from day one.
On 7 April 2026 the Fair Work Agency opened for business. It brings several employment rights enforcement bodies under one roof, including the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority, and its remit is set to grow.
Facilities management depends on temporary, agency and contracted labour more than most sectors: cleaning, security, front of house, maintenance and interim management cover. That makes the agency worth understanding, whether you employ temporary staff directly, hire them through an agency or buy services from a contractor.
What the Fair Work Agency is
The agency is an executive agency of the Department for Business and Trade, created by the Employment Rights Act 2025. At launch it brought together the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority and the Office of the Director of Labour Market Enforcement. National Minimum Wage enforcement continues to be delivered by HMRC for the first year, and the agency's remit is expected to grow over time.
What it can do
- inspect workplaces and gather documents and information;
- investigate without waiting for a worker to complain;
- issue financial penalties;
- bring employment tribunal claims on behalf of workers;
- name and fine employers who ignore tribunal awards.
The practical effect is that problems which used to surface only when a worker brought a claim can now be found proactively.
Rules that changed in April 2026
Two changes that came in alongside the agency matter for FM employers with large hourly-paid workforces:
- Statutory sick pay from day one. Since 6 April 2026, SSP has been payable from the first day of sickness absence, and the lower earnings limit has been removed, so lower-paid and part-time workers now qualify.
- Holiday records. Employers must keep adequate records of annual leave and holiday pay, and retain them for six years.
What to check if you use temporary staff
- Your agencies' compliance. Ask how holiday pay is calculated and paid, how SSP is handled from day one and how records are kept. A reputable agency will answer clearly.
- Timesheets and hours. Pay errors usually start with hours that are wrong or approved late. Make sure whoever signs off timesheets on site knows it matters.
- Your contractors' workforce. Where cleaning, security or maintenance is outsourced, your contracts should give you the right to ask about pay and working practices, and your due diligence should actually use it.
- Who is really in control. If a temporary worker has been on site for years, managed day to day by your team, review whether the arrangement still reflects how the work is done.
- Your own records. If you employ temporary staff directly, make sure holiday and sick pay records would stand up to an inspection six years from now.
A good moment to review how you resource
Many FM functions have drifted into long-running temporary arrangements because a permanent hire never quite happened. The new enforcement regime is a good prompt to ask whether each arrangement is still the right one. Some roles genuinely need interim cover; others are permanent roles waiting for a decision.
If you would like to talk through the mix of permanent, interim and temporary roles in your FM function, talk to our team, or see how we approach interim FM and estates appointments. This article is general information, not legal advice.
