Eighteen agencies supplying drivers to businesses in the West Midlands have been warned that they are failing to comply with the law and could face prosecution if they don’t change their ways, according to a government statement. Further action is being considered “in a number of cases”, the statement said.

The offences included:

• failing to confirm the identity of drivers
• not checking health and safety risks with hirers
• failing to issue terms and conditions, and
• not providing written agreements on pay.

The warnings follow intelligence-led investigations by the Employment Agency Standards Inspectorate, in collaboration with the Gangmasters Licensing Authority. “Investigators found that 18 agencies in the area broke the law a total of 80 times between them,” the statement said.

Agencies could be prosecuted and hit with unlimited fines or banned from operating for up to 10 years, the statement said.

The agencies receiving warnings were not identified in the statement.

Inspectors will be conducting further visits in the coming months to follow up on intelligence received during the investgations.

Department for Business Minister Pat McFadden said: “The recession must not be an excuse for denying people their employment rights. Cutting corners in this way exploits drivers, undercuts the agencies that play by the rules and, in this sector, could put people at serious risk on the roads.”