The UK labour market entered a new phase in April 2026 with the launch of the Fair Work Agency (FWA).
For employers relying on temporary workers, recruitment agencies and flexible labour, the FWA represents more than a change in enforcement structure. It signals a more joined-up approach to labour-market regulation, with greater emphasis on data, intelligence and targeted enforcement.
The Fair Work Agency began operating on 7th April 2026, bringing together functions previously carried out by organisations including the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority. National Minimum Wage enforcement is currently delivered by HMRC under contract, with responsibility scheduled to transfer to the FWA in April 2027.
For employers, the practical question is simple:
Is your temporary workforce strategy ready for a more connected and data-led enforcement environment?
The Fair Work Agency has been created to bring several areas of labour-market enforcement together under one organisation.
Its current remit includes employment agency standards, gangmaster licensing and labour exploitation. Further responsibilities are expected to follow, including National Minimum Wage enforcement in 2027.
The FWA's first 2026–27 delivery plan provides an indication of where the organisation is heading.
Its priorities include reducing compliance burdens, strengthening data and intelligence, increasing awareness, providing leadership and preparing for its future responsibilities.
For businesses using temporary labour, the focus on data and intelligence is particularly relevant.
Temporary workers can be critical to businesses managing seasonal demand, skills shortages and recruitment challenges.
However, the way temporary labour is sourced has become increasingly complex.
A single worker may be connected to an end client, recruitment agency, umbrella company and other intermediaries before they reach the workplace.
For large employers, managing these relationships individually can quickly become difficult.
The FWA's arrival provides a timely opportunity to review how those relationships are managed and whether the organisation has a clear picture of its temporary workforce.
This is not simply about avoiding regulatory problems. Better workforce information can also support cost control, supplier performance and workforce planning.
One of the most significant aspects of the FWA's first-year strategy is its focus on data and intelligence.
The agency intends to strengthen joined-up intelligence and develop its understanding of higher-risk areas of the labour market. It is also developing digital tools designed to improve engagement with workers and businesses.
For employers, this creates an obvious parallel.
Businesses should be able to answer basic questions about their temporary workforce:
Without reliable data, answering those questions can require significant manual effort.
The FWA has responsibility for employment agency standards and has a range of powers available where potential breaches are identified.
Its enforcement approach includes education and support alongside inspections and formal enforcement measures where appropriate.
For recruitment agencies, this reinforces the importance of having robust processes and accurate records.
For businesses using those agencies, it highlights the value of selecting suppliers carefully and monitoring performance throughout the relationship.
An agency should not simply be judged on how quickly it fills a vacancy.
Businesses also need to consider service quality, worker experience, contractual performance and the reliability of information being provided.
Many organisations have accumulated large recruitment supplier networks over time.
Different business units may use different agencies. Specialist recruiters may be brought in for hard-to-fill roles, while high-volume positions are managed through a separate group of suppliers.
This can create a fragmented operating model.
A Neutral Vendor Managed Service offers an alternative.
Rather than allowing every recruitment agency relationship to operate separately, a neutral vendor provides a central framework for managing suppliers.
This can cover:
The result is a more consistent way to manage multiple agencies without restricting access to the wider recruitment market.
The FWA's arrival also gives procurement teams another reason to look at the total cost of temporary labour.
The cheapest agency rate does not necessarily represent the lowest overall cost.
Procurement teams should consider the wider picture, including:
Agency spend: What is the organisation paying?
Efficiency: How much internal time is spent managing suppliers?
Performance: Which agencies consistently deliver?
Quality: Are supplied workers meeting operational requirements?
Data: Can spend and workforce activity be reported accurately?
Risk: Are supplier processes creating additional exposure for the organisation?
A more structured supplier model can bring these factors together and help procurement teams make decisions based on the overall value of the recruitment supply chain.
Although the FWA launched in April 2026, its role will continue to expand.
National Minimum Wage enforcement is expected to transfer from HMRC to the FWA in April 2027. The agency also states that holiday-pay enforcement is expected to begin in 2027, while a three-year Enforcement Strategy is being developed for publication in April 2027.
For employers, this makes 2026 a useful point to review existing workforce processes.
The organisations that build strong supplier management and workforce reporting now will have a more structured foundation as the FWA's remit develops.
Businesses using temporary labour can take several practical steps.
Identify every agency currently supplying workers and understand which parts of the business they support.
Look beyond fill rates. Consider quality, speed, service, worker experience and adherence to agreed terms.
Make sure HR, procurement and operational teams can access a consistent view of temporary labour numbers, suppliers and spend.
Understand what checks are completed when suppliers are appointed and how relationships are reviewed afterwards.
If different departments are independently managing recruitment agencies, assess whether a more coordinated model could improve efficiency and control.
At Datum RPO, we provide a Neutral Vendor Managed Service that helps organisations bring structure to complex temporary recruitment environments.
Our model allows businesses to work with multiple recruitment agencies while managing those suppliers through one central framework.
This can include supplier management, workforce reporting, recruitment performance, auditing, rate management and temporary labour procurement.
For organisations with significant temporary labour requirements, the benefit is not simply another layer of management.
It is a clearer way to connect recruitment activity, supplier performance, workforce demand and spend.
Datum RPO's vendor-neutral model also means agencies can compete for vacancies rather than the organisation being tied to one recruitment supplier.
This gives employers access to a wider talent pool while providing a consistent framework for managing the recruitment network.
The arrival of the Fair Work Agency marks an important development in UK labour-market regulation.
But its significance extends beyond the creation of a new enforcement body.
Its first-year priorities point towards greater use of data, intelligence, joined-up working and targeted enforcement.
For employers, that makes good workforce information and effective supplier management increasingly valuable.
The question is no longer simply whether an organisation has enough recruitment agencies.
It is whether those agencies are being managed as part of one effective workforce strategy.
For businesses using temporary labour at scale, a Neutral Vendor Managed Service can provide the structure needed to bring recruitment suppliers, workforce data and procurement activity together.
The Fair Work Agency is here. For UK employers, 2026 is an opportunity to review how temporary labour is sourced, managed and measured before the regulatory landscape develops further.
The Fair Work Agency is the UK's new labour-market enforcement body. It began operating on 7th April 2026 and brought together functions previously carried out by several organisations, including employment agency standards and gangmaster licensing and labour exploitation enforcement.
Its current responsibilities include employment agency standards, gangmaster licensing and labour exploitation. National Minimum Wage enforcement is currently delivered by HMRC under contract, with responsibility scheduled to transfer to the FWA in April 2027.
The FWA's 2026–27 priorities include reducing compliance burdens, strengthening data and intelligence, increasing awareness, providing leadership and preparing for future responsibilities. It is also developing greater intelligence around sectors considered higher risk, including social care and construction.
Datum RPO provides a Neutral Vendor Managed Service that gives organisations a centralised approach to recruitment supplier management. Through supplier governance, reporting, workforce management and auditing, organisations can gain a clearer view of their temporary labour network while improving control over supplier performance and spend.
Datum RPO helps organisations manage their temporary workforce through an independent Neutral Vendor Managed Service, bringing multiple recruitment agencies into one structured operating model.
The approach combines supplier management, workforce reporting, auditing, recruitment performance and temporary labour procurement. This gives organisations a central point for managing their recruitment supply chain while retaining access to multiple agencies.
Datum RPO's vendor-neutral position means it does not operate as a recruitment agency competing with its suppliers. Instead, recruitment agencies can compete for vacancies within the client's agreed framework.
With the Fair Work Agency placing greater emphasis on data, intelligence and effective labour-market enforcement, having a structured approach to recruitment supplier management can help organisations maintain better oversight of their temporary workforce
As the Fair Work Agency develops its role, businesses have an opportunity to take a more strategic approach to their temporary workforce. Datum RPO can help organisations bring recruitment suppliers, workforce data and temporary labour procurement together through one managed model.