The Association of Labour Providers (ALP) has released new guidelines on temporary labour charge rates.

From 1 October, grade 1 agricultural workers will earn an hourly rate of £5.74 in England and Wales, while in Scotland and Northern Ireland workers will earn £5.73.

The new rates were agreed by the GLA, Recruitment & Employment Confederation (REC), Defra, the Scottish Executive and The Department for Agriculture and Rural Development (DARDNI) and comes into force from 1 October and include changes to the relevant minimum wages and statutory holiday entitlements.

Rates payable to labour providers for temporary workers must cover the appropriate minimum wage, employer’s national insurance, statutory holiday entitlement, overhead costs and an element for labour provider profit.  The actual rate charged is a commercial agreement between the labour provider and client. However, firms whose charge rates are much lower than the national minimum wage are likely to be investigated.

David Camp, director at the ALP, said: “We have reported cases to the GLA in which labour users are paying rates where there is no chance that taxes can be paid and the workers receive minimum wage, holidays and their other entitlements.  In these cases the labour user is complicit in law breaking and faces serious disruption to their business and damage to their brand when eventually the authorities catch up with them.  Anyone who is aware of such low rates being paid may advise the ALP or can report it directly to the GLA.”