Recruitment Industry Asks Tough Questions of Gangmaster Licensing Proposals

The Recruitment and Employment Confederation, the industry body for the private recruitment industry today said it would be posing some tough questions about how the new licensing arrangements for gangmasters will operate.

The REC has been supportive of the principle of regulating the gangmaster industry, given there have been significant problems within the sector, that have reflected badly on employment agencies acting ethically and within the law.

DEFRA today published its consultation document on how the licensing regime will operate in practice. The consultation will run until 29th October. Specifically, the REC will be questioning:

How agencies that only conduct a minority of work in the sectors covered by the The Gangmasters (Licensing) Act 2004, and are already covered by existing statutory regulations, will be treated

Whether government agencies, such as Jobcentre will be covered by the regulations

The level of bureaucracy within the new licensing body, particularly the fact that the fee looks particularly high when set against the costs of the new body

How the new licensing body will deal with any potential shortfall in funding (whether, like the Criminal Records Bureau, it will simply increase the licence fee)

What specific performance targets will be created for the new licensing body

Commenting on the consultation, Tom Hadley, Director of External Relations at the REC said:

ìIf we are to have licensing for gangmasters, then we must make sure it doesnít become costly for employment agencies that already operate within a strict legal framework. We need to know how the licensing body will deal with any shortfall in funding and the targets it will be set. 2000 might not seem like a lot of money to DEFRA when it is spending billions a year, but itís a big cost for our smaller members who may supply infrequently to this sector and who already comply with the Conduct Regulations. DEFRA needs to balance the cost of compliance with the ability to conduct business in this sector.

For further information, please contact the REC press office on 020 7618 9106