GLA raises minimum recommended fee

The Gangmasters Licensing Authority (GLA), the organisation that regulates companies that supply labour or use workers to provide services, has announced plans to raise its recommended fee for labour providers

In April, the GLA will raise its minimum fee that it advises recruiters to charge its clients per hour, for every temporary worker that it employs. The authority warned that recruiters who offer staff at rates below the recommended £7.34 minimum are potentially breaking the law and may be cutting corners at the expense of the workers, who could be receiving a lower minimum wage, inadequate training or less holiday entitlement.


Emma Ceballos, operations director for recruitment service provider gap personnel, said: “Time and time again, we have come across potential clients who have come to us and said they have been offered a significantly discounted minimum fee for supplying their temporary workforce.


“In the vast majority of cases, recruiters are able to reduce costs legitimately, by using that rate as a loss leader, for example. However, there are a small number of cases where a recruiter is cutting corners through tax evasion or by cheating its workforce out of fair and ethical working standards.”


Firms are strongly advised to contact the GLA directly if they encounter any practice which they feel is not operating within the boundaries of the law and should visit www.gla.gov.uk and click on ‘Labour Providers’ for more information.


Ceballos added: “It is vital that companies question the prices they are quoted by labour providers and understand exactly how these costs are distributed. Dealing with a recruiter who is involved in illegal practice will also make the client liable to prosecution.”