Dynamic Workforce, based in Smethwick in the West Midlands, has become the first company to have its Gangmasters Licence revoked.

The licence has been revoked with immediate effect due to Gangmaster Licensing Authority concerns with the immediate heath and safety and welfare of workers. This means that the business must stop trading immediately or they will face further GLA action if they operate without a licence.

Another six labour providers investigated can continue to trade until an appeal against the decision has been heard by an independent appeals body or the period to make an appeal has lapsed.

All of the inspected providers supply workers to a major food production site in the Vale of Evesham which in turn supplies the major supermarkets.

Paul Whitehouse, chairman of the GLA, says: “Revoking a licence with immediate effect is a serious decision and is only taken when we find significant non-compliance. The GLA was set up to curb the exploitation of workers and in the case of Dynamic Workforce Ltd, we had to take action immediately to protect the workers.”

Anybody who supplies workers to the agriculture, shellfish gathering and food and drink processing and packaging sectors in the UK needs to be licensed by the GLA, or they risk prosecution and imprisonment of up to ten years.