New offence of using unlicenced labour providers

It is already an offence for gangmasters to operate in these sectors without a licence, including recruitment and employment agencies who supply labour or provide a labour service. Now anyone employing an unlicenced gangmaster could face up to six months in jail, a £5,000 fine, or both.

Mike Wilson, chief executive of the Gangmasters Licensing Authority (GLA) said: "It takes two to exploit labour - the provider and the user. We have introduced the GLA licensing scheme to bring providers up to the mark. It is now time to look at the other side of the relationship - the labour user.

"We have already started to do this. A number of investigations have been opened and information and evidence is being gathered with the expectation of early action."

He added: "By using unlicensed labour providers, labour users become complicit in this exploitation. This is illegal and risky. Risky, because buyers and retailers understand perfectly the damage to their business that could be caused through association with illegal and exploitative practices, and will simply stop using sources that are tainted in this way."

The Department for the Environment, Food and Rural Affairs (DEFRA) has published guidance setting out the steps that a labour user can take to ensure a labour provider is licensed - see link above/right.

Robust checks

DEFRA said that by taking these steps a labour user could establish a defence in court to show they took all reasonable steps to check that the labour provider was licensed.

Minister for food and farming, Jeff Rooker, said: "Farmers and other labour users will for the first time break the

law if they use an unlicensed labour provider. I would urge all labour users to follow our guidance.

"We have tried to keep the steps a labour user can take as simple as possible to ensure they do not impede the flexible supply of labour. This is vital, but it is also important to ensure the checks are robust enough to identify rogue gangmasters. I believe the guidance strikes the right balance."

David Meller, socially responsible sourcing manager of Sainsbury's, said that "quite simply, without gangmasters our supply chain would grind to a spectacular halt.

"The creation of the GLA was a significant milestone for all those involved in the food industry - an industry heavily reliant on flexible workers. The GLA is an important ally in helping to ensure that we manage our supply chains responsibly and afford workers the protection that they deserve."

A list of licensed labour providers is accessible via the Gangmasters Licensing Authority website - link also provided above/right.