Dear Denise – Your HR Agony Aunt | Edition 3: The Employment Rights Act Anxiety

With several new employment law changes coming into force in February and April 2026, many employers are finding it harder than ever to keep up. From sick pay and holiday entitlements to increased enforcement, the pace of change is leaving business owners feeling uncertain and, in some cases, overwhelmed.

That’s why this month’s Dear Denise – HR Agony Aunt column focuses on exactly that. Senior HR Consultant Denise from BeyondHR, who brings almost 20 years of hands-on HR experience, has been answering a growing number of questions from business leaders who want to stay compliant, without losing sleep.

Dear Denise,

I’ve been hearing a lot about the Fair Work Agency launching in April 2026, and to be honest, it’s making me uneasy.

I run a small business in Renfrew and while I always try to do right by my staff, HR and employment law isn’t my background. From what I understand, this new agency will be enforcing things like holiday pay and statutory sick pay, areas where the rules already feel complicated enough.

Am I more likely to be inspected now? What happens if I’ve made a genuine mistake? And how can small employers like me protect ourselves?

Concerned Employer, Renfrew

Dear Concerned Employer,

You’re certainly not alone, I’ve been asked this exact question many times over the past few weeks. Any new enforcement body can sound intimidating, but it’s important to understand what’s really changing.

The Fair Work Agency, launching in April 2026, will bring together existing enforcement bodies and take on responsibility for enforcing employment rights such as holiday pay and statutory sick pay. The aim is greater consistency and clarity, not to catch out well-meaning employers.

Here’s how I’d recommend approaching this:

• Focus on the fundamentals
Ensure holiday pay, sick pay, and working time records are accurate and up to date. Many issues arise simply because practices haven’t been reviewed for years.

• Check your paperwork
Clear contracts, written policies, and accurate records are essential. If questions are raised, being able to demonstrate how decisions were made can make all the difference.

• Don’t rely on being “too small to notice”
While SMEs aren’t being targeted, size won’t excuse non-compliance. Fair and consistent practices matter for every employer.

• Address concerns early
If an employee raises an issue, deal with it promptly and fairly. Early intervention often prevents escalation.

• Get advice sooner rather than later
A quick review now can help identify and fix any gaps before they become costly problems. Most enforcement action is directed at employers who ignore their responsibilities, not those who engage, seek advice, and put things right.

It’s also worth being aware that the Fair Work Agency will have broader powers than some employers may expect. From April 2026, the agency will be able to bring employment tribunal claims on behalf of workers, even where an individual employee may feel unable or unwilling to do so themselves.

It will also be able to offer legal support for those cases and recover costs from employers found to be non-compliant. These powers are designed to improve access to justice and tackle persistent breaches of employment law, particularly around issues like holiday pay and minimum wage. For employers, this simply reinforces the importance of getting the basics right and addressing issues early, before they escalate.

This new agency isn’t about punishment, it’s about accountability and clarity. If you’re making reasonable efforts to comply and you’re open to guidance, you’re already doing far more than you think. And if you’re unsure, that’s exactly when expert HR support can help.

Warm regards,
Denise
Your HR Agony Aunt at BeyondHR

Have an HR dilemma you’d like Denise to answer?

We’d love to hear from you. Email your question to denise@wegobeyondhr.com and it could be featured in an upcoming Dear Denise column. All questions remain anonymous.

If you’d prefer a private conversation about your HR challenge, call us on 0800 111 4461, our team is here to help.