Five IT agency workers have recovered £59,052 in unpaid wages after a recruitment agency withheld payment when they moved to another employment business, according to the Fair Work Agency.
The workers complained to the agency’s Employment Agency Compliance team after going unpaid for 19 days of work completed in May 2026. The Fair Work Agency announced the recovery on 4 November.
Why the payments were withheld
The recruitment agency told investigators that the five workers had left to work through another employment business. It also said each had signed an agreement opting out of the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
Certain contractors working through their own limited companies can opt out of protections under the regulations, but the opt-out process must meet legal requirements. Investigators said the agency could not provide sufficient evidence that the hiring organisation had been notified of the agreements, as required by Regulation 32.
The Fair Work Agency concluded that the opt-outs were invalid and the regulations continued to protect the workers. It said withholding their payments breached Regulation 12. All five workers were subsequently paid in full.
How much each worker recovered
- Worker 1: £11,970
- Worker 2: £9,120
- Worker 3: £10,260
- Worker 4: £10,602
- Worker 5: £17,100
The combined total was £59,052. The workers and the recruitment agency were not identified in the announcement.
What the Fair Work Agency said
An inspector involved in the investigation said the agency had failed to provide sufficient evidence that the hirer was notified of the opt-outs, meaning the legal protections still applied.
The Fair Work Agency said it had recovered more than £300,000 for workers since beginning operations in April 2026. Separately, its Employment Tribunal Penalties team had helped secure more than £665,000 across 80 cases. Those figures refer to different enforcement activities and should not be added together as a single recovery total.
What workers can do
Workers concerned about unpaid wages can contact the Fair Work Agency on 0345 161 6000. Whether a particular contractor is protected under the Conduct Regulations depends on the arrangement and whether any opt-out was validly completed.
