Jul 30, 2026 · 26 min · 13 segments
In this episode of Employment Talk, our hosts examine the government's plans to introduce state enforcement of holiday pay and what this could mean for employers. With the Fair Work Agency expected…
Elaine HutleyHost
Jo MoseleyHost
Um, but before I do that, I should say that the government has launched a consultation about this.
So some of what I'm going to say is fixed in the sense that the framework is set out in the Employment Rights Act, and it won't therefore change.
Other things might, though, depending on what the evidence that the government receives from the consultation.
So as I've said, at the moment, if a worker thinks that they've been underpaid holiday pay, they generally have to bring a claim themselves, and the government doesn't think that this is particularly fair or efficient, and it wants a system where enforcement doesn't rely solely on individuals taking action.
But the Fair Work Agency will be able to force employers to pay their staff the correct amount of holiday pay through a range of mechanisms, all of which operate outside of the tribunal system.
Um, but before I do that, I should say that the government has launched a consultation about this.
So some of what I'm going to say is fixed in the sense that the framework is set out in the Employment Rights Act, and it won't therefore change.
Other things might, though, depending on what the evidence that the government receives from the consultation.
So as I've said, at the moment, if a worker thinks that they've been underpaid holiday pay, they generally have to bring a claim themselves, and the government doesn't think that this is particularly fair or efficient, and it wants a system where enforcement doesn't rely solely on individuals taking action.
But the Fair Work Agency will be able to force employers to pay their staff the correct amount of holiday pay through a range of mechanisms, all of which operate outside of the tribunal system.
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