The Gangmasters Licensing Authority (GLA) has used legislation to crackdown on illegal labour providers by revoking the licences of seven operators following an investigation at a food production site in Worcestershire.

The licence of West Midlands firm Dynamic Workforce was revoked straight away, meaning the business must stop trading immediately or face further action.

At the time of going to press, Dynamic Workforce was unavailable for comment, but the company had lodged an appeal against the GLA action.

The other six labour providers, whose names were not released, are able to continue to trade until their appeals are heard by an independent appeals body.

The problems discovered by the GLA related to health and safety training, minimum wage payments, holiday pay, and records of days and hours worked.

GLA chairman Paul Whitehouse warned: "We have shown we are conducting unannounced operations and we will continue to do so. I'd advise all businesses operating with a licence to maintain continuous compliance with the GLA standards or they will meet the same action."

The Recruitment and Employment Confederation (REC) last week backed the revocations. Chief executive Marcia Roberts said: "It is only through stringent action such as this that the licences sector will be rid of its rogue element. This is a warning to unscrupulous labour providers at a time when the REC is already working with the DTI and other government departments to address exploitation of vulnerable workers."

The GLA has also revealed it held an investigation at flower preparation and packaging sites in Lincolnshire and Hampshire. No action was taken on this occasion.