APPENDIX 2: GANGMASTERS (LICENSING CONDITIONS)
(NO. 2) (AMENDMENT) RULES 2008 (SI 2008/638)
Further information from the Gangmasters Licensing
Authority
1. The Gangmasters Licensing Authority (GLA)
consulted from 8 November 2007 to 21 December 2007. 1,368 people
and businesses were consulted, including all licence holders and
main industry representatives. 20 responses were received.
2. The recommended option advocated keeping levels
unchanged for the lowest fee bands with an increase for the 3
higher bands.
3. The key points raised in the consultation
include:
- The Association of Labour Providers (ALP) and
the Recruitment and Employment Confederation (REC) advocated introducing
a mechanism for charging new applicants which relate to any time
spent trading illegally in addition to the normal licence fee.
- Some concern was expressed, particularly by ALP
and REC, at the proposed increase in fee levels for those in fee
bands A - C and called for the GLA to make further cost savings.
However, a number of licence holders who responded supported the
preferred option.
GLA Position Post Consultation
4. The GLA understands the concerns for the increase
in fees for bands A - C, but the Authority considered the preferred
option was best for the majority of small business sized licence
holders (over 70 per cent). Keeping band D unchanged, in real
terms, represents a saving for those licence holders. Therefore,
this was the option approved by the GLA Board on 22 January (the
GLA Board includes representatives from industry, including the
ALP and REC).
5. Every effort has been made to keep GLA costs
down. Further cost reductions would impact on the GLA's operational
capabilities and could damage the effectiveness of the Authority.
6. Following the consultation exercise, the GLA
developed a process for dealing with new applicants who have previously
traded illegally: if the GLA identifies a new applicant as trading
illegally in the previous 12 months, the start date of the licence
could be back dated to the point in time the illegal trading commenced.
This is in line with the GLA's proportionate approach to enforcement
and would address any advantage the business may have gained through
illegal trading. Regardless of whether the applicant accepts a
backdated licence start date, prosecution will still be considered
appropriate if significant exploitation of workers is identified.
March 2008
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