Licences for gangmasters could be reintroduced if a new bill to stamp out abuse of immigrant labourers passes through Parliament.

Jim Sheridan, Labour MP for West Renfrewshire, has proposed a private member’s bill in the House of Commons that would regulate gangmasters and how they treat their employees.

They typically supply cheap labour to the agricultural and industrial sectors and Sheridan estimates that there are around 3,000 such businesses operating in the UK.

Gangmasters are often accused of abusing workers’ rights by forcing their gangs to work long hours, withholding pay and abusing health and safety regulations.

Gangmaster registration appears to move in cycles. Statutory registration was first introduced in 1945, then withdrawn in 1951. In 1973 licences were reintroduced under the Employment Agencies Act but withdrawn again in 1994.

Now the Transport and General Workers Union, which has backed the bill, has called for a fresh clampdown on gangmasters.

Sheridan said: "It cannot be right that a vital part of the UK economy thrives on illegality and exploitation. Employment rights and civil liberties are breached on a routine basis. Deductions are made from wages."

The bill is due to have its second reading in the Houses of Parliament at the end of next month.