Governments aren’t just writing new employment law enforcement rules anymore. They’re building the agencies to actually enforce them. This week, the UK’s brand-new Fair Work Agency published its enforcement policy statement, with powers to fine employers 200% of underpayments and launch investigations without waiting for a complaint. Meanwhile, Georgia now requires work permits for nearly all foreign nationals, and China is systematically rejecting work permit renewals for anyone over 60. If you manage a distributed team across these regions, your compliance window just got tighter.
UK Fair Work Agency Launches With 200% Penalty Powers and Employment Law Enforcement Teeth
The UK’s Fair Work Agency (FWA) officially launched on April 7, 2026, and it changes everything about how employment law enforcement works in Britain. This isn’t a rebrand. It’s a consolidation of three separate enforcement bodies, the HMRC National Minimum Wage team, the Gangmasters and Labour Abuse Authority (GLAA), and the Employment Agency Standards Inspectorate (EAS), into a single agency with significantly expanded powers. (Source: UK Government)
The penalty structure is aggressive. If an employer underpays holiday pay or Statutory Sick Pay, the FWA can require full repayment within 28 days and impose a penalty of 200% of the amount owed, capped at £20,000 per worker. Pay within 14 days, and the penalty drops to 100%. Ignore it, and you’re looking at both the original underpayment and a fine that doubles the bill. (Source: FWA Enforcement Policy Statement)
The bigger shift is proactive investigations. Unlike the previous system where enforcement typically started with a worker complaint, the FWA can now initiate inspections on its own. No complaint needed. If your payroll data looks off, or if sector-wide intelligence flags your industry, the FWA can show up.
Alongside the FWA launch, a related change took effect on April 6: failure to keep adequate holiday pay records is now a criminal offence. Employers must maintain records showing compliance with annual leave entitlements, correct holiday payments, and terminal leave calculations, retained for six years. The penalty for non-compliance? Potentially unlimited fines. (Source: Lewis Silkin)
If you employ anyone in the UK, even through an EOR, you need to confirm that your provider has updated their UK employment law compliance processes. Check that holiday pay tracking meets the new six-year retention standard. And verify that SSP is now paid from day one, not day four. The FWA’s retrospective powers reach back to December 2025, so historical underpayments are already in scope.
Georgia Now Requires Work Permits for All Foreign Workers
Georgia, long a favourite for digital nomads and remote workers because of its easy visa rules, introduced a mandatory work permit regime on March 1, 2026. The Special Labour Activity Permit now applies to almost every foreigner who wants to work, freelance, or run a business in Georgia. (Source: Fragomen)
The requirements go beyond paperwork. Before hiring a foreign worker, Georgian employers must post the role on the national employment portal for at least 10 working days to demonstrate that no qualified local candidate is available. This is a proper labour market test, similar to what the UK and Singapore already require.
Self-employed foreigners who were already operating in Georgia before March 1 have until May 1, 2026, before enforcement kicks in. Employees of diplomatic missions, refugees, and holders of investment residence permits are exempt. Everyone else needs the permit. Penalties for working without one start at 2,000 GEL (roughly USD 750) for the first offence, hitting both the worker and the employer. (Source: Eurofast)
If you’ve been hiring in Georgia without formal work authorization, the grace period ends soon. Talk to your legal team or EOR provider about the labour market test process before May 1.
China Rejects Work Permit Renewals for Workers Over 60, Tightens Employment Law Enforcement in Major Cities
China’s work permit system has quietly tightened since early 2026. The most significant change: applicants aged 60 or older now face systematic rejections when trying to renew Category B or C work permits. This affects experienced professionals, consultants, and senior technical staff who previously renewed without difficulty. (Source: China Briefing)
Beijing and Shanghai have also started verifying salary-based pathways for Category A and Category B talent classifications. If your employee’s declared salary doesn’t match what the local tax bureau has on file, expect delays or outright rejections. Nanjing has refined its 60-point scoring system to prioritize job relevance over years of experience.
For companies with senior staff in China, this creates an immediate problem. Review China’s current work permit requirements and flag any team members approaching 60 whose permits expire this year. You may need to restructure their role classification or explore alternative visa pathways before renewal comes due.
Quick Hits
- New Zealand, April 20: Open work visas split into two tiers. Tier 1 allows any work including self-employment. Tier 2 restricts holders to employer-based work only. Working Holiday Visas fall under Tier 2. Review your NZ workforce’s employment law status before the switch. (Source: Immigration New Zealand)
- New York State, April 18: Employer credit check ban takes effect statewide. No requesting, obtaining, or using an applicant’s credit history for hiring, promotion, or compensation decisions. Limited exemptions for law enforcement, bonded positions, and fiduciary roles over $10,000 authority. (Source: FordHarrison)
Action Items This Week
If you employ workers in the UK: Confirm your payroll system or EOR has updated SSP calculations (day-one payment, no earnings threshold). Verify holiday pay record-keeping meets the new six-year criminal compliance standard. The Fair Work Agency can investigate without a prior complaint, so don’t wait for one.
If you have contractors or employees in Georgia: Self-employed foreigners must obtain the Special Labour Activity Permit before May 1. Employers must complete the 10-day labour market test before hiring foreign nationals. Budget 2,000 GEL per violation.
If you employ workers in China: Flag any team member over 55 whose work permit expires in 2026. Begin renewal conversations early, as Category B and C rejections for workers 60+ are now systematic. Confirm salary declarations match tax filings in Beijing and Shanghai.
If you hire in New Zealand: Audit open work visa holders on your team before April 20. Confirm which tier their visa category falls under. Tier 2 holders cannot be self-employed, so any contractor arrangements may need restructuring.
If you hire in New York: Remove credit history checks from your hiring workflow by April 18. Update screening vendor contracts. The ban applies to all employers making decisions about NY-based workers, including those using an EOR.
Employment law enforcement is accelerating across every major hiring market. If your compliance processes haven’t kept pace, Asanify’s Global Employer of Record platform tracks regulatory changes across 150+ countries so your team doesn’t have to.
Frequently Asked Questions
What is the UK Fair Work Agency and what can it do?
The Fair Work Agency is a new UK government body that launched on April 7, 2026. It combines three previous enforcement agencies into one. The FWA can investigate employers proactively without waiting for a worker complaint, issue fines of up to 200% of any underpayment (capped at £20,000 per worker), and enforce compliance with National Minimum Wage, holiday pay, and Statutory Sick Pay rules.
Do I need a work permit to freelance in Georgia now?
Yes. Since March 1, 2026, Georgia requires a Special Labour Activity Permit for nearly all foreign workers, including freelancers and self-employed individuals. If you were already freelancing in Georgia before March 1, you have until May 1, 2026, to obtain the permit before enforcement begins.
Can workers over 60 still get a work permit in China?
It has become significantly harder. Since early 2026, China has been systematically rejecting Category B and C work permit renewals for applicants aged 60 and above. Category A (high-end talent) may still be possible, but companies should plan alternative arrangements for senior staff approaching retirement age.
What changes with New Zealand’s open work visa on April 20?
From April 20, 2026, all open work visas in New Zealand will carry one of two employment conditions. Tier 1 permits any lawful work, including self-employment. Tier 2 restricts holders to working for an employer only. The tier depends on your visa category. Working Holiday Visa holders, for example, fall under Tier 2.
Does the New York credit check ban apply to EOR employers?
Yes. The ban covers any employer making employment decisions about workers based in New York State, regardless of whether the company hires directly or through an Employer of Record. EOR providers must also comply when screening candidates for NY-based roles.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
