Gangmasters - Frequently asked questions about licensing
Questions and Answers
Q1. What is the purpose of the Gangmasters (Licensing) Act 2004?
A. The Gangmasters (Licensing) Act 2004 is intended to protect workers from exploitation and reduce illegal activity.
Q2. What is a Gangmaster?
A. In general terms a person is “acting as a gangmaster” if he or she:
- supplies a worker to do work to which the Act applies;
- uses a worker to do work to which the act applies in connection with services provided by him or her to another person; or
- uses a worker to do certain specified types of work (in particular gathering shellfish).
Q3. Do people who provide a service need a licence?
A. Yes. A person needs a licence if he or she uses workers to provide a service to a client.
Q4. Do people who lease or buy standing crops prior to harvest need a licence?
A. Yes, unless the person harvesting the crop was the former owner or tenant who has retained title to the crop after selling the land or the termination of a tenancy.
Q5. Does the Act apply to the whole of the UK?
A. Yes. The Act applies to work done in the United Kingdom and on the shore or sea bed (above or below the low water mark) or in UK coastal waters. The reference to coastal waters is of particular relevance in relation to gathering shellfish. While most cockle beds are exposed at low water, some shellfish are gathered in the shallows just below the low water mark.
Q6. Does the Act apply to labour providers based overseas?
A. Yes.
Q7. What penalties apply to an unlicensed labour provider?
A. The maximum penalties for the offences of operating as a labour provider without a valid licence and for being in possession of false or improperly obtained relevant documents are 10 years imprisonment, a fine or both.
Q8. What penalties apply to a person using an unlicensed labour provider?
A. A labour user who is found guilty of an offence may face a prison sentence of up to 6 months, a fine or both.
Q9. Is a licence required even if a worker is working illegally?
A. Yes. A person working in the UK illegally is a worker for the purposes of the Act. This ensures that labour providers cannot evade the licensing requirements by employing illegal workers.
Q10. Do employment agencies and businesses require a licence?
A. Yes. Where an Employment Agency or Business undertakes activities covered by the legislation, they require a licence. These businesses are excluded from the provisions of the Employment Agencies Act 1973 (or relevant employment agency legislation in Northern Ireland) in so far as they are undertaking activities for which a licence is required.
Q11. Does the Act apply to Northern Ireland
A. Yes, although the detailed licensing arrangements may differ from other parts of the UK.
Page last modified:
14 November 2006
Page published: 22 March 2005