SMEs who fail to comply over the government's 'Fair Work Act' will face legal consequences
Briefly

SMEs who fail to comply over the government's 'Fair Work Act' will face legal consequences
""The creation of the FWA marks a step change in the Government's attitude towards employment rights and shows they will take a proactive approach to enforcing them," H-J Dobbie, Head of HR Consultancy at Azets, said. "Many of the areas the FWA will enforce when it launches in April - Statutory Sick Pay, statutory holiday entitlement, and agency worker protections for example - are areas employers should already be complying with, but if they don't, the consequences of not doing so will become more serious from the spring of next year.""
""The Fair Work Agency will have the authority to impose financial penalties, publicly identify employers who fail to comply, and represent workers in Employment Tribunal proceedings. "Its introduction signals a major shift in how employment rights are enforced, and businesses should begin now to review their processes, including payroll processes around accuracy and compliance, to ensure readiness for its launch in April 2026. "Preparing now will help avoi"
The Fair Work Agency (FWA) will launch in April 2026 with strengthened enforcement of employment rights, including Statutory Sick Pay, statutory holiday entitlement, and agency worker protections. The FWA can enforce employer failures to pay holiday and SSP, issue notices of underpayment covering up to six years, and require payment within 28 days. The agency can investigate suspected non-compliance, enter business premises, interview staff, and examine documents, computers and equipment. The FWA can impose financial penalties, publicly identify non-compliant employers, and represent workers in Employment Tribunal proceedings. Employers should review payroll and HR processes now to ensure accuracy and compliance and avoid fines or reputational damage.
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