Rate of record
Fair Work Agency
The FWA is the new single labour-market enforcement body, launched 7 April 2026. It brings together the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority and sets the strategic direction for NMW enforcement. During the 2026/27 transitional year HMRC continues day-to-day NMW compliance work, with full transfer expected from April 2027.
What the FWA does
The Fair Work Agency launched on 7 April 2026, bringing the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority under one roof and taking strategic ownership of NMW enforcement. NMW, agency-worker rules, gangmaster licensing and modern slavery employment standards fall within its remit; holiday pay and statutory sick pay enforcement are planned for later, once new teams and systems are in placegov.uk.
Powers it has on NMW
- Notice of underpayment requiring back pay at the current rate.
- 200% penalty of the arrears, capped at £20,000 per worker.
- Naming-and-shaming referral to the DBT.
- Criminal prosecution for the most serious cases (rare; reserved for fraud).
How to complain (four steps)
- Gather evidence. Collect payslips, written hours records, contract, accommodation/uniform deductions.
- Run the diagnostic. Use the am-I-being-underpaid calculator to confirm effective rate vs band floor and compute 6-year arrears.
- Submit the FWA complaint. File the complaint via gov.uk/pay-and-work-rights. Anonymous reporting is supported.
- Wait for the response window. Initial assessment within 28 days; investigation timelines vary by complexity.
Does the FWA replace HMRC NMW enforcement?
Eventually. The FWA now sets NMW enforcement strategy, but during the 2026/27 transitional year HMRC's NMW compliance team continues day-to-day enforcement under the FWA's direction; full operational transfer is expected from April 2027. Tax and NI enforcement stays with HMRC permanently, and PAYE / RTI returns still feed the NMW data pipeline.
Report this to HMRC or the Fair Work Agency
Underpayment is enforceable. Workers can report anonymously and arrears are recovered at the current rate, not the historic rate.