Why getting minimum wage calculations right matters more than ever

Matthew Taylor CBE, author of the influential Taylor Review of Modern Working Practices, has been appointed as the first Chair of the new Fair Work Agency – a body that’s set to change how the UK enforces employment rights.

The Agency, which launches in April 2026, will become a single point of contact for workers and employers.

Government figures suggest that 900,000 UK workers have holiday pay withheld each year and nearly 20% of minimum wage workers are underpaid.

The Fair Work Agency will be given stronger powers to investigate and tackle employers. These include workplace inspections, civil penalties for underpayments, and the ability to bring proceedings against an employer on behalf of a worker.

At the same time the Agency is being tasked with providing support to businesses on following employment laws so that employers who want to do the right thing aren’t being undercut by those who don’t.

With the Agency not being launched until next April, now is the time to review how your business calculates pay.

If you’re unsure whether your pay systems are up to date or need help understanding how upcoming changes in employment law might affect your payroll, we would be happy to help you! A quick review now could save a costly investigation later.

See: https://www.gov.uk/government/news/new-agency-chair-appointed-to-crack-down-on-minimum-wage-underpayment-and-worker-exploitation

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