Evan Wright represented a recruitment company in a matter investigated by the Gang Masters and Labour Abuse Authority (GLAA). It was said the company had supplied workers to the agricultural industry without the necessary GLAA licence.

The Gangmasters (Licensing) Act 2004 established the Gangmasters Licensing Authority (GLA) on 1 April 2005. It arose in the aftermath of the 2004 Morecambe Bay cockling disaster; a case in which lawyers at JMW Solicitors were involved. The authority was given the task of preventing exploitation of workers in the fresh produce sector — horticulture, agriculture and shellfish gathering, together with the associated processing and packaging. On 30 April 2017, the GLA was renamed the Gangmasters and Labour Abuse Authority (GLAA).

The Gangmasters (Licensing) Act 2004 includes a number of criminal offences that apply to both labour providers and labour users. For labour providers, it is illegal under s12 of the Gangmasters (Licensing) Act to:

• operate as a gangmaster without a licence
• possess a document - either false, improperly obtained or belonging to someone else - with the intention of inducing someone to believe that you, or someone else, are licensed by the GLAA.

The maximum penalty for operating without a licence is 10 years in prison and/or a fine.

For labour users, workers supplied within the GLAA regulated sectors must be supplied by a licensed labour provider. It is a criminal offence to enter into an agreement with an unlicensed gangmaster. This carries a maximum penalty of six months in prison and/or a fine. It is also an offence to obstruct a GLAA officer in the course of their duties, with a maximum penalty of six months in prison and/or a fine.

In the recent case, the GLAA investigated the labour user and established where the workers had come from. The officers then spoke to the recruitment company and it became apparent that they were not aware of the requirement to hold a licence. They made an application for a licence going forward, but the officers continued the investigation and asked to hold an interview under caution at the company premises. JMW represented the company in preparing for the interview and gathering evidence in support of the company’s position. We also attended the interview and made representations. Some of the data advanced by the labour user turned out to be inaccurate and was corrected during interview. Representations were made around the GLAA’s enforcement policy and we argued a prosecution was not necessary or proportionate. The GLAA agreed to issue a ‘Notification of Offences’ letter; essentially a warning that if the company were to repeat the wrongdoing, a prosecution would almost certainly follow. Apart from referring to the statutory provisions (summarised above), a Notification of Offences letter states:

“If you undertake, or continue with, the unlicensed supply of labour within the regulated sector or use workers from, or the services of, an unlicensed labour provider you will be committing an offence.

The Authority will record the fact that you have received this notification. This will be taken into account when considering criminal proceedings resulting from any breach of the legislation”.

The outcome was a good result for the company, because it avoided a prosecution in circumstances where the company had clearly profited substantially from unlicensed supply of labour. The result also enabled the company to continue with its application for a licence.