R&I spotlight on gangmasters law
Produced in partnership with Patrick Cook & Huw Cooke of Burges Salmon LLP
R&I spotlight on gangmasters law

The following Restructuring & Insolvency practice note produced in partnership with Patrick Cook & Huw Cooke of Burges Salmon LLP provides comprehensive and up to date legal information covering:

  • R&I spotlight on gangmasters law
  • What is the main legislation governing this area?
  • Why is it relevant to insolvency practitioners and their staff?
  • What sectors are covered by the gangmasters licensing regime?
  • Agriculture
  • Processing and packaging any product derived from agriculture, fish or shellfish
  • Who does the gangmasters regime protect?
  • What businesses need to hold a gangmasters licence?
  • Exclusions
  • Obligations on licensed gangmasters
  • More...

The gangmasters regime protects workers from exploitation by operating a licensing system in:

  1. agriculture

  2. horticulture

  3. shellfish gathering and associated processing and packaging sectors

Businesses which supply labour (known as 'gangmasters') or businesses which use workers to provide services in these sectors need to comply with the gangmasters regime.

What is the main legislation governing this area?

The main legislation governing this area is:

  1. the Gangmasters (Licencing) Act 2004 (G(L)A 2004)

  2. the Gangmasters (Licensing Conditions) Rules 2009 (the Rules), SI 2009/307, and

  3. the Gangmasters Licencing (Exclusions) Regulations 2013 (the Regulations), SI 2013/2216

In addition, the legislation is supported by guidance issued by the Gangmasters Licencing Authority (GLA), the body which issues licences, monitors compliance and takes enforcement action (see their website at: www.gla.gov.uk).

Why is it relevant to insolvency practitioners and their staff?

Knowledge of the gangmasters regime is relevant to insolvency practitioners (IPs) because if they are responsible for a business which supplies or uses labour in one of the regulated sectors, a failure to comply with the licensing regime can give rise to criminal offences and civil liability.

To understand the potential risks which an IP might face, it is important to understand how the gangmasters regime operates and, in particular:

  1. what sectors are covered by the regime

  2. who is protected

  3. what businesses need a gangmasters licence

  4. what arrangements are excluded, and

  5. what obligations licensed gangmasters need to comply with

What

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