The Gangmaster Licensing Bill was given royal assent today, representing a significant step towards resolution of what has been a major problem for the fresh produce industry.
The successful passage through all of the necessary parliamentary stages had been completed before the Journal went to press; the latest achievement of several years of work by a cross-industry group including the Fresh Produce Consortium (FPC).
“This sees the successful delivery of one of the FPC’s key objectives,” said Doug Henderson, who as ceo of the FPC took a leading role in the development of a code of practice for gangmasters and guidelines for its implementation. “We have been involved since the process began seven years ago and it is very satisfying to see the results of all the work and effort put in culminating in the successful passage of legislation.”
The bill will establish the Gangmasters Licensing Authority (GLA), a non-departmental public body sponsored and funded by Defra. The GLA will consist of industry stakeholders and representatives from government and enforcement agencies and set the conditions of the licence after consultation, process licence applications, set and collect licence fees, establish a public register of licensed gangmasters, and have the power to modify, suspend or revoke licences.
An appeals system will be managed by the GLA, which will also have the power to enforce the licence conditions and the ability to investigate and enforce arrestable offences.
The bill covers all UK agricultural and horticultural work, including processing or packaging of products derived from these industries/sectors.
It will apply to gangmasters based in the UK and offshore; and it will also cover all forms of sub-contracting. Employment agencies and employment business (as defined by the Employment Agencies Act 1973) will come within the ambit of the bill if they are engaged in activities for which a licence is required. The bill extends the full protection of the law to workers.
Offences established by the bill will play an important role in changing the culture of gangmasters, by providing a deterrent for those who operate outside the law. The list of offences covers both gangmasters and companies or individuals that use them, ranging from operating without a licence to using an unlicensed gangmaster - subject to a reasonable steps/due-diligence defence.
In addition, the bill gives enforcement officers the power of arrest for these offences. And, as well as being liable to imprisonment for 12 months if convicted of operating without a licence or possessing a false licence or documents, the bill has added deterrent value by including sentences for repeat offences. A second offence could lead to imprisonment for up to two years, while a third-time offender could face a 10-year jail term.
There is likely to be a 12-18 month gap between royal assent and full implementation of the bill, said Henderson. “Part of our work is to give guidance to the fresh produce industry in order that gangmasters and those that use them are fully prepared for the legislation when it arrives. We will be running a series of seminars later in the year, at which details of the bill will be explained together with advice on what action businesses should take to ensure that they are fully compliant with its requirements. Ideally, we would like everybody to be acting as if the bill had already been implemented before it happens.”
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