Since 7th April 2026 the EAS was imported into the Fair Work Agency (FWA), so we now refer to EAS inspections as FWA inspections. However the FWA’s role to inspect employment agencies and employment businesses and investigate breaches of compliance rules remains as it was prior to April.
Although scope of FWA investigations is broader than under the EAS, the rules remain mainly the same. This is primarily under the Employment Agencies Act 1973, which includes the Conduct Regulations (Conduct of Employment Agencies and Employment Businesses Regulations 2003).
I last wrote about EAS Inspections in 2023 – see here. Nothing has changed, EAS, or rather, FWA inspections can be expected at any time. This is more likely to be as part of a series of inspections within an area or sector rather than as a result of a complaint, so agencies need not fear if an inspector comes calling. This day-to-day activity by the inspectorate is standard fare, generally preceded by a letter announcing the intention to inspect on a certain day, and giving plenty of notice.
It’s particularly important that agencies shouldn’t over react. Clearly the purpose of an inspection is to check the agency’s paperwork, its contracts and its compliance processes. So an agency that is not sure that everything is in order would be wise to check first. But unless there are serious failings there is little to fear.
A typical inspection that discovers some issues with contract terms or process failure is likely to result in a letter from the department requiring these areas to be corrected within a time scale. FWA attitude is to help to correct rather than bear down.
There are some key points though. Whilst it always feels great to have comfort during an inspection, it doesn’t normally make sense to call in an external lawyer to attend. This step shouldn’t be necessary in normal circumstances; it could appear to be overly defensive and will probably be an unnecessary cost.
If you are at all worried it’s better to undertake a full review of your processes and documents before an inspection. This may show up problems so you are aware of any risk areas, but won’t conceal them. The advantage of a such a review would be to enable you to correct any problem areas and be seen to be doing so when the inspection takes place. This may be late in the day so far as the inspector is concerned, but it will demonstrate commitment to compliance and therefore be seen as a positive.
Which leads me to cost. Supporting an agency that is coming up for an EAS inspection need not be expensive. Firms like Lawspeed, of which I am CEO, are manned by specialist lawyers who are very familiar with EAS/FWA inspections. It normally doesn’t cost much to review the agency’s processes and contracts and, if there are anomalies, provide any necessary advice.
Replacement documents, if needed, can also usually be provided promptly, often addressing both compliance and commercial issues at the same time. Also one of the team can be on hand remotely (or physically if called for) during an inspection should the agency need support on dealing with questions. A more hands on approach with thorough detailed reporting and attendance can be provided but is usually not needed to address a standard EAS inspection.
A better approach of course is to get your ship in order sooner rather than later, regardless of any EAS/FWA inspection. Help from Lawspeed (we’ve been helping agencies for nearly three decades), for example, can range from simple advice and documents through to full accreditation with a logo under our Standards in Recruitment scheme. Experience counts, restoring peace of mind need not take much time, or cost an arm and a leg!
