GLA needs more resources to combat minimum wages abuse
9 July 2014
The Gangmasters Licencing Authority (GLA), which enforces labour standards in agriculture and food processing, should be given more resources to help clamp down on minimum wage abuses, according to a government-backed report.
Wed, 9 Jul 2014
The Gangmasters Licencing Authority (GLA), which enforces labour standards in agriculture and food processing, should be given more resources to help clamp down on minimum wage abuses, according to a government-backed report.
A report by the home secretary’s Migration Advisory Committee (MAC) said there had been minimal impact on the low paid by EU migrants but concluded that greater resources and penalties were needed to enforce minimum wages.
Its chairman David Metcalf said gangmasters who abuse minimum wage laws in the UK only face the threat of prosecution by HMRC once in a million years.
“A typical employer can expect a compliance visit [from the HMRC] just once in every 250 years and a prosecution once in a million years,” said Metcalf.
The report said that Britain’s flexible labour market had generally worked well but there were not enough resources devoted to enforcing minimum wages laws and taking action against gangmasters.
Even when it finds evidence of serious exploitation – substantial underpayment of wages – the courts normally only impose trivial penalties.
Instead, the report added, there is a strong case for extending the work of the GLA into other sectors such as construction, cleaning, care and hospitality, which would require extra resources.
A report by the home secretary’s Migration Advisory Committee (MAC) said there had been minimal impact on the low paid by EU migrants but concluded that greater resources and penalties were needed to enforce minimum wages.
Its chairman David Metcalf said gangmasters who abuse minimum wage laws in the UK only face the threat of prosecution by HMRC once in a million years.
“A typical employer can expect a compliance visit [from the HMRC] just once in every 250 years and a prosecution once in a million years,” said Metcalf.
The report said that Britain’s flexible labour market had generally worked well but there were not enough resources devoted to enforcing minimum wages laws and taking action against gangmasters.
Even when it finds evidence of serious exploitation – substantial underpayment of wages – the courts normally only impose trivial penalties.
Instead, the report added, there is a strong case for extending the work of the GLA into other sectors such as construction, cleaning, care and hospitality, which would require extra resources.
