Fair Work Agency: First conviction secured
The Fair work Agency has secured its first conviction utilising its enforcement powers. The defendant pleaded guilty to one count of acting as an unlicensed gangmaster under Section 12 of the Gangmasters (Licensing) Act 2004.
The Fair Work Agency was established in April 2026 as an enforcement body for the Employment Rights Act. Currently enforcement duties cover laws regarding National Minimum Wage, employment agency conduct, and the non-payment of tribunal awards. These enforcement powers will be extended to include Statutory Sick Pay and holiday payments, in due course.
One of the areas of enforcement the FWA covers is gangmasters licencing, having taken over enforcement duties from the Gangmasters and Labour Abuse Authority.
What is a gangmaster?
The term gangmaster is used to describe a person who supplies labour to various sectors, much like an employment agency. Some of the sectors typically involving this process are agriculture, horticulture, food processing and shellfish. Under law gangmasters are expected to hold a valid gangmasters licence to ensure workers are protected from exploitation.
As a result of the business owner’s failure to obtain a licence, having previously had the licence revoked following an inspection conducted by the Gangmasters and Labour Abuse Authority, the court issued a £1000 fine. On top of the fine, the court also issued a surcharge of £400 to be paid to a victim, alongside court costs of £85.
On top of the financial penalties, the court also imposed a 12-month Labour Market Enforcement Order (LMEO). This will require the areas of non-compliance to be addressed, with the potential for further enforcement action if the court order is not complied with.
Ensure your business is compliant in the event of an inspection
Croner has over 80 years’ experience in helping small to medium businesses with everything from HR and Employment Law to Health and Safety. With the Fair Work Agency now actively inspecting businesses for compliance under the Employment Rights Act 2025, compliance across all areas of employment law is now more vital than ever.
Talk to a member of our HRand Employment Law Advisory team today. Call 0800 470 9999.