Agency failed to pay for 19 days of work. Watchdog recovers £59,000 for five IT workers – what the law says

05.11.2026, 11:01 (UK time)

News

The new Fair Work Agency (FWA) has recovered more than £59,000 in unpaid wages for five IT workers supplied by an employment agency. The watchdog announced it on Wednesday 4 November. The workers had not been paid for 19 days of work done in May. The agency said it withheld the money because they had moved to another employment business, and that each had signed an opt-out from the protection of the agency regulations.

The FWA found, however, that the agency could not show it had notified the hirer (the firm where they worked) of the opt-outs. The opt-outs were therefore invalid, and withholding pay breached the 2003 regulations on employment agencies. The money was paid in full – individual workers received between about £9,100 and £17,100. Since April the FWA has recovered more than £300,000 for workers.

What it means

Many Poles in the UK work through agencies – in warehouses, IT, construction and care. This case shows an agency cannot withhold pay for work done just because you move to a competitor. And a signed opt-out is not always valid – it must meet formal conditions.

Why it is happening

The Fair Work Agency has operated since April 2026. It brought together several earlier bodies dealing with workers’ rights, including the employment agency inspectorate, as part of the employment rights reforms. Workers can complain free of charge, and recovering money early often avoids an employment tribunal.

Risks

• People working through their own limited company can opt out of some protections – know what you are signing.
• Without documents (contract, hours worked, invoices, messages) it is harder to recover money.
• Waiting too long makes it harder to claim what you are owed.

What could happen next

The FWA plans further checks on agencies. Firms that lose at an employment tribunal may also face a state financial penalty. More such cases can be expected as the watchdog gets up to speed.

What to do

• Keep contracts, timesheets, invoices and correspondence with the agency.
• Before signing an opt-out, ask what exactly it means and whether the hirer will be told.
• If an agency does not pay, report it to the Fair Work Agency: 0345 161 6000 or via the form on gov.uk (pay and work rights complaints).
• Acas also offers free advice.

Contact us

Have a question or need help in Polish? Email [email protected], use the live chat on our website or call 07508 267866 (Mon–Fri 9:00–13:00 and 15:00–18:00, Sat 11:00–14:00).

Sources: GOV.UK – Recovery of £59,000 for five IT Agency Workers; GOV.UK – Pay and work rights complaints

Photo: Helloquence, CC0, Wikimedia Commons.