Gangmaster Gurkha’s UK Ltd, based in Sevenoaks, Kent, has had its licence revoked by the Gangmasters Licensing Authority (GLA) following failure to pay tax and national insurance, and to provide workers with their full pay entitlement.
The firm had its licence revoked without immediate effect in April 2008, but appealed against the decision. However, at appeal, the independent appointed person decided that Gurkha’s UK did not successfully challenge any of the GLA findings.
These included: no income tax or national insurance had been paid, and there was no scheme in place to collect these or VAT; wages were withheld as no holiday pay or statutory sick pay was received by workers; no evidence that payslips were produced or given to workers; workers had worked in excess of 48 hours without signing the 48-hour opt-out agreement; workers had not received health and safety training; and there were contract and record-keeping irregularities.
GLA chairman Paul Whitehouse said: “Gangmasters who don’t pay tax do not just gain a competitive advantage over the legitimate gangmasters but are also defrauding the public.”
Jonathan Shaw, parliamentary under-secretary of state at Defra, said: “Law-breaking gangmasters who defraud the public purse undermine legitimate business. We want to completely stamp out illegal practices within the industry.”
The GLA has also closed down a Scottish gangmaster, Renavatio Limited in Aberdeenshire.
Ieva Osite had her business closed because: she failed to co-operate with the labour user to ensure that responsibility for managing the health and safety of workers had been agreed; she failed to properly control the health and safety risks to which they were exposed at work; paperwork for a 48-hour opt-out for employees was not in accordance with employment regulations; deductions from the workers’ pay of income tax and national insurance were not accurate, appropriate and paid to HM Revenue & Customs; and contract irregularities.
Renevatio Limited did not appeal against the decision.
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