GLAA suspends its brief on treatment of holiday pay

The Gangmasters and Labour Abuse Authority (GLAA) is suspending a new brief setting out a contentious position on the treatment of holiday pay and how to comply with their Licensing Standards.

In a letter to the Recruitment & Employment Confederation (REC) and the Association of Labour Providers (ALP) received on Friday [10 November 2023], the GLAA recognises the intention of the government to introduce new legislation by the end of this year. This has led it to suspend its new brief until such time any new legislation is confirmed, according to a statement from the REC.

The new brief was the GLAA responding to the Supreme Court decision of Harpur v Brazel, which was handed down in July 2022. REC said it was concerned about the significant impact of this new brief on licence holders who use a contract for services for their workers. 

“The GLAA had told us that the REC’s contract for services, which provides for there being no contract between assignments, will not be compatible with their Licensing Standards in the future – an interpretation of the Harpur v Brazel case that REC disputed strongly,” the REC statement said.

A contract for services can be used for the provision of services on a one-off or short-term basis, under a long-term arrangement or through a framework or master services agreement.

REC deputy CEO Kate Shoesmith said: “We strongly believe the brief contained an incorrect approach to holiday pay for workers on contacts for services. This will provide a great reassurance to many recruiters.”

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