Lisa Pinney MBE was appointed Chief Executive of the Fair Work Agency just weeks before the body launched as the UK Government’s new employment law enforcement authority on 7 April, 2026.
As new measures continue to roll out, Lisa sat down with Kevin Fitzgerald, UK Managing Director of Employment Hero for the Inside the Workroom video series – her first interview since taking the role – and laid out what small and medium-sized businesses should look out for.
How does the Fair Work Agency see its relationship with small businesses?
“We know that the majority of companies want to do the right thing by their workers. We want to make it easier and simpler for businesses to comply with employment law. But obviously we have to underpin that and support the level playing field by taking tough action against rogue businesses who exploit workers and undercut legitimate business.
“We also welcome intelligence and input from business colleagues and small businesses to help us with that. We’re really seeking to engage with a range of businesses, including SMEs and sector groups, to inform our approach and guidance and to provide more information about our work.”
What will change under the Fair Work Agency – what’s new?
“We’re building the Fair Work Agency in key stages. Serious labour exploitation and modern slavery enforcement, gangmaster licensing and employment agency regulation joined us from day one on the seventh of April. National Minimum Wage compliance works with us under contract this year before joining us fully at the start of April 2027.
“But even above that, we’re getting ready for some of the new duties. Things like holiday pay – we believe that will be at the front of that line. We’ve also got new fraud powers, which help with that tough enforcement approach. It’s very important to us that we’re not just the sum of our parts, so we’re really working to build the elements, the integration, the capability that will increase our reach, increase our impact.”
What are the agency’s priorities right now?
“Firstly, to ensure that workers and victims of labour exploitation understand their rights, know how to access support and raise concerns. Secondly – very importantly – to simplify compliance and support [businesses ] to understand and act on their obligations. And thirdly, to take tough action against rogue businesses who exploit workers, undercut legitimate business and damage the level playing field.
“We encourage SMEs to look across their employment obligations, to use the information and guidance available. If you find a problem, put it right and let us know. We want to work with legitimate businesses that want to do the right thing. We recognise that sometimes everybody makes mistakes. The important thing is that they get put right – and that you let us know and we’ll work with you. Please do see us as someone here to help as well.”
What triggers an investigation?
“There are lots of different ones. We work both reactively and proactively across our remit. We use intelligence and referrals – they come in from workers, from businesses, from partners – and we use them to target investigations and action. We also work with our regulated sectors such as agriculture and food production and employment agencies, and we sometimes take a targeted regional focus, very much at the moment used for National Minimum Wage and related action.
“We very much work with partners to use data and information and intelligence to proactively assess risk and to target our activity. We want to make the biggest difference, we want to maximise our reach and we want to drive the most outcomes – and to target those that are deliberately setting out to cause harm.”
What does the process look like for a business that’s never been investigated before?
“In most cases it would probably start with a letter informing employers either that we’re going to be in the region shortly, perhaps providing advice on what sort of proactive checks and actions employers can take, and generally giving some time for them to do that and to self-report any problems or outcomes of that. And we’ll work with those businesses.
“Those areas will then be subject to follow-up inspections and actions if significant non-compliance is found. That’s generally the approach for things like National Minimum Wage, employment agency compliance – and it’s likely to be the case for holiday pay, Statutory Sick Pay enforcement, those types of things.
“For reports of serious labour exploitation or modern slavery, this often comes in based on reports, referrals, intelligence provided by partners, charities, businesses or individuals. They tend to come into our contact centre, they’re considered alongside wider intelligence, and then a more enforcement-led visit would take place as part of that investigation. It’s all part of trying to be proportionate – to provide that balance between encouraging compliance and supporting businesses to correct mistakes, but taking tough action against those who set out to exploit workers.”
What are the biggest misconceptions employers have about compliance?
“A lot of these are things that have been the right things to do for a while – they’ve just got more powers, more teeth. There’s a lot of concern around this, but I think a lot of it comes back to the same steps, really.
“Ensure that your policies and procedures are up to date. Make sure that your employees are receiving the pay and conditions they’re entitled to. If you find a problem, put it right – come and talk to us, self-report to us. We’ll work with good businesses that want to do the right thing. And it comes back to good record keeping. It can be quite simple, but being able to demonstrate that those are the steps that you’ve taken.”
What is the single most important thing an SME should do this year?
“Do a simple compliance review. Have a look at the guidance that’s most relevant to you, your business, your sector. Ensure that your people are receiving the pay and conditions that they need to – and that you’ve got simple documentation in place, simple records, to be able to demonstrate that. You do need to be able to demonstrate your compliance.
“Records don’t have to be complex. They should be proportionate to the size of your business. Simple and accurate records are key – things like payslips, for example, are a huge step. And there are lots of simple, cost-effective and practical tools, apps and systems available to help with that.”
Where can technology genuinely help employers stay compliant – and where do humans still need to be in the chain?
“AI and tech can really help with managing your business. That can really help with record keeping and demonstrating compliance. But we would always recommend that there is a human in the chain. You have to understand the inputs that you’re putting in and you have to be able to sense check the outputs. You can’t just give it to a machine. You do need to understand the principles of what you’re trying to achieve, what you’re putting in and what’s coming out the other side.
“Tools and technology are fantastic help, but ultimately as a business you have to remain responsible for how you use it. That’s very much our approach as well – the Fair Work Agency will be using AI and other technology to improve our efficiency, our reach, our delivery. But we will also always ensure that there’s appropriate human oversight and involvement too.”
And for those who aren’t sure where to start?
“Nobody knows your business better than you as a business owner. It’s for you to decide what’s the most effective and efficient way to pay your people fairly and completely – and to demonstrate that for reviews and inspections. Staying back to the core basic principles: understanding the things that really matter, getting the pay and conditions right, and being able to evidence that. Then finding what is most proportionate and sensible for your business.”
Click below to watch the full episode of Inside the Workroom
