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United Kingdom Statutory Instruments


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STATUTORY INSTRUMENTS


2006 No. 2373

EMPLOYMENT

The Gangmasters (Licensing Conditions) (No.2) Rules 2006

  Made 5th September 2006 
  Laid before Parliament 7th September 2006 
  Coming into force 1st October 2006 

The Gangmasters Licensing Authority, following consultation with the Secretary of State in accordance with section 8(3) of the Gangmasters (Licensing) Act 2004 [1], in exercise of the powers conferred upon it by section 8 of that Act, makes the following Rules:

Citation, commencement and interpretation
     1. —(1) These Rules may be cited as the Gangmasters (Licensing Conditions) (No.2) Rules 2006 and come into force on 1st October 2006.

    (2) In these Rules—

Revocation
     2. The Gangmasters (Licensing Conditions) Rules 2006[3] are revoked.

Application for a gangmaster's licence
     3. —(1) The principal authority is responsible for completing the information submitted in an application for a gangmaster's licence.

    (2) He and any person who is put forward to be named or otherwise specified in the licence must be a fit and proper person.

    (3) He must disclose details of—

    (4) He must disclose details of any previous trading in the sector that is regulated by the 2004 Act in the previous five years including full details of any business concerned.

    (5) He, and in the case of a body corporate, all the directors, and in the case of a partnership, all the partners, must be 16 years old or older.

    (6) He must inform the Authority of—

    (7) He must inform the Authority of the turnover of his business in the sector that is regulated by the 2004 Act for the previous financial year or in the case of a new business, the expected turnover.

    (8) He must inform the Authority if the business has been subject to an audit under the Code of Practice of the Temporary Labour Working Group[5] or any other audit approved by the Authority and agree that details of that audit are disclosed by the auditor to the Authority.

    (9) He must make available any records the Authority may request in support of the application to the Authority and persons acting on behalf of the Authority.

    (10) Any director or partner of the business, and any person proposed to be named in the licence must provide to the Authority on demand any details specified in paragraph (3) or (4).

    (11) The Authority can impose such conditions as it considers appropriate when it grants the licence and can also impose additional conditions after the grant of a licence.

Licence conditions
     4. —(1) The licence holder must fulfil the following conditions.

    (2) He and any person named or otherwise specified in the licence must at all times act in a fit and proper manner.

    (3) He must notify the Authority within 20 working days if there are significant changes to details submitted with his application, except for the annual turnover which must be notified in accordance with paragraph (5).

    (4) He must notify the Authority within 20 working days if the persons named or if the positions otherwise specified in the licence change and any new persons named must also disclose any details under rule 3(3) at the request of the Authority.

    (5) He must inform the Authority, on demand, of the annual turnover of his business in the sector that is regulated by the 2004 Act for the previous financial year.

    (6) He must notify the Authority as soon as reasonably practicable if he suspects his licence has been used by someone not authorised to act on behalf of that licence holder.

    (7) He must provide details of his licence at the request of any constable, enforcement officer or compliance officer to that constable, enforcement officer or compliance officer.

    (8) He, or a person named or otherwise specified in the licence, must provide—

    (9) He must permit the Authority to inspect the business at any reasonable time.

    (10) He must comply with the conditions in the Schedule as applicable.

Criteria to be considered when assessing "fit and proper"
    
5. When assessing whether an applicant and a licence holder is fit and proper to hold a gangmaster's licence, the Authority shall have regard to these Rules and the obligations contained in regulation 12 (2) of the Gangmasters (Licensing Authority) Regulations 2005[6].

New applications
     6. —(1) A licence expires and must be reapplied for if any of the following details of the licence holder change—

    (2) A new application fee is payable if a licence is reapplied for after it expires.

The application fee and renewal fee
    
7. —(1) A licence shall last for one year and shall then expire, unless rule 6 applies or the licence is revoked by the Authority.

    (2) The fee payable in relation to the application for a grant of a licence is payable with the application.

    (3) The application fee is based on the turnover, or expected turnover, of the business in the sector that is regulated by the 2004 Act for the previous financial year as placed in bands A, B, C or D in the table below.

    (4) When an application for a licence for gathering shellfish is received on or before 30th November 2006, the application fee is reduced by £250.

    (5) The renewal fee is based on the turnover of the business in the sector that is regulated by the 2004 Act for the previous financial year as placed in bands A, B, C or D in the table below.

    (6) The full renewal fee must be paid by the expiry date.

    (7) Application fees and renewal fees are not refundable.

    (8) These fees are subject to any relevant taxes and duties.


Licence fees payable
Annual turnover of business Fee Band Annual Fee
£10 million + A £4,000
£5 – 10 million B £2,000
£1 – 5 million C £750
Less than £1 million D £250

Application inspections
    
8. —(1) The applicant must permit, and pay for, an inspection of the business as part of the application process if the Authority considers it necessary.

    (2) The fee for an application inspection as provided for in paragraph (1) is based on the fee bands below.

    (3) These fees are subject to any relevant taxes and duties.

Annual turnover of business Fee Band Fee
£10 million + A £2,500
£5 – 10 million B £2,100
£1 – 5 million C £1,850
Less than £1 million D £1,600

Civil liability
    
9. —(1) Without prejudice to—

which exists or may be available apart from the provisions of the 2004 Act and these Rules, contravention of, or failure to comply with any of the provisions of the Act or of these Rules by a licence holder shall, so far as it causes damage, be actionable.

    (2) In this paragraph, "damage" includes the death of, or injury to, any person (including any disease and any impairment of that person's physical or mental condition).

Effect of prohibited or unenforceable terms and recoverability of money
    
10. —(1) Where any term of a contract is prohibited or made unenforceable under these Rules the contract shall continue to bind the parties if it is capable of continuing in existence without that term.

    (2) Where a labour user pays any money pursuant to a contractual term which is unenforceable by virtue of paragraph 8 of the Schedule to these Rules, the labour user is entitled to recover that money.

Electronic and other communications
    
11. —(1) Except where otherwise provided, any requirement in these Rules—

may be satisfied by one of the means in paragraph (3).

    (2) Any reference in these Rules to a person giving consent or obtaining another person's consent to something shall be construed as a reference to giving or receiving that consent by one of the means in paragraph (3).

    (3) The means referred to in paragraphs (1) and (2) are —

provided that any information so given, sent or transmitted is in a form which is clearly legible by the intended recipient.


Paul Whitehouse
Chairman Gangmasters Licensing Authority

5th September 2006



SCHEDULE
Rule 4(10)


Licence Conditions (as applicable)


Definition of connected person
     1. For the purposes of this Schedule a person is considered to be connected with —

Prohibition on charging fees
     2. A licence holder may not charge a fee to a worker for any work-finding services.

Prohibition on requiring workers to use additional services
     3. A licence holder may not make the provision of work-finding services conditional upon the worker—

whether provided by the licence holder or by any person with whom the licence holder is connected.

Restriction on detrimental action relating to workers working elsewhere
     4. —(1) A licence holder may not (whether by the inclusion of a term in a contract with a worker or otherwise)—

    (2) For the avoidance of doubt, the following shall not constitute a detriment for the purposes of this paragraph—

Restriction on providing workers in industrial disputes
     5. —(1) A licence holder must not introduce or supply a worker to a labour user to perform—

unless in either case the licence holder does not know, and had no reasonable grounds for knowing, that the first worker is taking part in a strike or other industrial action.

    (2) This paragraph does not apply if, in relation to the first worker, the strike or other industrial action is an unofficial strike or other unofficial industrial action for the purposes of section 237 of the Trade Union and Labour Relations (Consolidation) Act 1992[8].

Restriction on paying workers' remuneration
     6. —(1) A licence holder shall not in respect of a worker whom he has introduced or supplied to a labour user who has then employed the worker—

    (2) This paragraph does not apply where the labour user and the licence holder are connected.

Restriction on charges to labour users
     7. —(1) Any term of a contract between a licence holder and a labour user which is contingent on a worker taking up employment with the labour user or working for the labour user pursuant to being supplied by another licence holder is unenforceable by the licence holder in relation to that worker, unless the contract provides that instead of a transfer fee the labour user may by notice to the licence holder elect for a hire period of such length as is specified in the contract during which the worker will be supplied to the labour user—

    (2) In sub-paragraph (1), "transfer fee" means any payment in connection with the worker taking up employment with the labour user or in connection with the worker working for the labour user pursuant to being supplied by another licence holder.

    (3) Any term as mentioned in this paragraph is unenforceable where the licence holder does not supply the worker to the labour user, in accordance with the contract, for the duration of the hire period referred to in this paragraph unless the licence holder is in no way at fault.

    (4) Any term of a contract between a licence holder and a labour user which is contingent on any of the following events, namely a worker—

is unenforceable by the licence holder in relation to the event concerned where the worker begins such employment or begins working for the labour user pursuant to being supplied by another licence holder, as the case may be, after the end of the relevant period.

    (5) In sub-paragraph (4), "the relevant period" means whichever of the following periods ends later, namely—

    (6) In determining for the purposes of sub-paragraph (5)(b) the first day on which the worker worked for the labour user pursuant to the supply of that worker to that labour user by the licence holder, no account must be taken of any supply that occurred prior to a period of more than 42 days during which that worker did not work for that labour user pursuant to being supplied by that licence holder.

    (7) A licence holder must not—

Prohibition on withholding payment to workers
     8. A licence holder may not (whether by means of the inclusion of a term in a contract with the worker or otherwise) withhold or threaten to withhold the whole or any part of any payment due to the worker in respect of any work done by the worker on any of the following grounds—

Requirement to obtain agreement to terms with workers
     9. —(1) Before supplying a worker to a labour user, a licence holder must agree the terms which will apply between the licence holder and the worker including—

    (2) Subject to sub-paragraph (3), a licence holder must record all terms in writing, where possible in one document, and give the worker the written terms before he provides any services to the worker.

    (3) Sub-paragraph (2) shall not apply if the worker has been given a written statement of particulars of employment in accordance with Part I of the Employment Rights Act 1996[9].

    (4) Terms referred to in sub-paragraph (2) may only be varied by written agreement, a copy of which must be provided to the worker as soon as possible and in any event no later than the end of the fifth working day following the day the variation was agreed.

    (5) A licence holder may not make the continued provision of any services by him to a worker conditional on the agreement by the worker to any variation.

Content of terms with workers
     10. The terms to be agreed in accordance with paragraph 9 shall include—

Requirement to obtain agreement to terms with labour users
     11. —(1) Before first providing services (other than the provision of information in the form of a publication) to a labour user, a licence holder must agree the terms which will apply between the licence holder and labour user, including—

    (2) The licence holder must record the terms in a single document and send a copy to the labour user as soon as reasonably practicable.

    (3) If the licence holder and the labour user agree to any variation in the terms set out in the document referred to in sub-paragraph (2), the licence holder must provide a document containing details and the date of the variation as soon as is reasonably practicable.

Information to be obtained from a labour user
     12. A licence holder may not supply a worker to a labour user unless he has obtained the following information—

Confirmation to be obtained about a worker
     13. A licence holder may not supply a worker to a labour user unless he has obtained confirmation—

Steps to be taken for the protection of the worker and the labour user
     14. —(1) Before any work is commenced, a licence holder must ensure that he has—

    (2) Where a licence holder receives or obtains information which gives him reasonable grounds to believe that a worker is unsuitable for the position with a labour user for which the worker is being supplied, he must without delay—

    (3) Where a licence holder receives or obtains information which indicates that a worker may be unsuitable for the position concerned, but where that information does not give reasonable grounds to believe that the worker is unsuitable, he must without delay—

    (4) Where, as a result of the enquiries made under sub-paragraph (3) a licence holder has reasonable grounds to believe that the worker is unsuitable for the position concerned he must, without delay—

    (5) In this paragraph "without delay" means on the same day, or where not reasonably practicable, the next working day.

Provision of information to workers and labour users
     15. —(1) A licence holder must ensure that at the same time as—

    (2) Where any of the information referred to in sub-paragraph (1) was given orally, the licence holder must provide it in paper form or by electronic means as soon as possible and in any event within three working days.

    (3) Sub-paragraph (1) shall not apply where—

unless the worker or labour user request otherwise.

Situations where more than one licence holder is involved
     16. —(1) A licence holder ("A") may not enter into any assignment or sub-contract with another licence holder ("B") for B to supply workers either directly or indirectly to a labour user unless—

    (2) A may not assign or sub-contract any of his obligations under any contract or arrangement with a worker or labour user to B unless the terms upon which those obligations are assigned or sub-contracted are in writing, where possible recorded in a single document.

Situations where workers are provided with travel or required to live away from home
     17. —(1) A licence holder may not arrange for a worker to take up a position other than as a labour user's employee (within the meaning of section 230(1) of the Employment Rights Act 1996) if, in order to take up that position, the worker must occupy accommodation other than his home, unless the conditions in sub-paragraph (2) are satisfied.

    (2) The conditions referred to in sub-paragraph (1) are that the licence holder has taken all reasonably practicable steps to ensure that—

    (3) Where a worker is—

the licence holder must, if the work does not start or upon it ending, either arrange free travel for the worker's return journey, pay his return fare or obtain an undertaking from the labour user or any intermediary to arrange free travel or pay the return fare.

    (4) The licence holder must give notice to the worker setting out the details of the free travel or payment of fares including any conditions on which the same are offered.

    (5) If a labour user or intermediary does not comply with an undertaking given under sub-paragraph (3), the licence holder must either arrange free travel for the return journey of the worker or pay his fare.

    (6) If a worker is under the age of 18, a licence holder may not arrange for him to any take up a position which will require him to live away from home unless the parent or guardian of the worker has consented.

    (7) If a worker is loaned money by the licence holder, the labour user or any intermediary to meet travel or other expenses in order to take up a position—

Confidentiality
     18. —(1) Except as provided in this Schedule, a licence holder may not disclose information relating to a worker, without the prior consent of that worker, except—

    (2) A licence holder may not disclose information relating to a worker to any person for whom the worker is currently working without that worker's prior consent, which has not by the time of such disclosure been withdrawn, and may not make the provision of any services to that worker conditional upon such consent being given or not withdrawn.

Records relating to workers
     19. Every licence holder must record, as soon as reasonably practicable, the following details in relation to every application received from a worker—

Records relating to labour user
     20. Every licence holder must record, as soon as reasonably practicable, the following details relating to labour users—

Records relating to dealings with other licence holders
     21. Every licence holder must record, as soon as reasonably practicable, the following details relating to other licence holders—

General provisions relating to records
     22. —(1) A licence holder must keep all records for at least one year.

    (2) The records may be kept at any premises a licence holder uses for or in connection with the carrying on of his business, or elsewhere; if kept elsewhere, the licence holder must ensure that they are readily accessible and capable of being delivered to the licence holder's premises in the United Kingdom or to the Authority within two working days.

    (3) All records may be kept in written or electronic form.

Conditions which apply to gathering shellfish
     23. —(1) This paragraph only applies to shellfish gatherers.

    (2) The licence holder must ensure that there is a competent supervisor for each individual group of workers and this supervisor must be named on the licence.

    (3) The supervisor must—

    (4) The licence holder or the supervisor must notify the Maritime and Coastguard Agency Rescue and Coordination Centre of—

    (5) For the purposes of this paragraph, the "work area" means the place where the shellfish are gathered.

    (6) If a fisheries permit or licence is required to gather shellfish the licence holder must ensure that workers comply with the provisions of that permit or licence.



EXPLANATORY NOTE

(This note is not part of the Rules)


These Rules establish the procedure for licensing gangmasters covered by the provisions of the Gangmasters (Licensing) Act 2004 (the 2004 Act), and the conditions that will apply to the licences. The Gangmasters (Licensing Conditions) Rules 2006 are revoked and replaced by these Rules.

Rule 3 specifies the information to be provided by an applicant.

Rule 4 and the Schedule specify the licence conditions that apply to licence holders.

One of the requirements of obtaining or keeping a licence is that the licence holder is fit and proper. Rule 5 provides that an applicant or licence holder is fit and proper if he complies with the criteria set out in these Rules and with the obligations contained in regulation 12 (2) of the Gangmasters (Licensing Authority) Regulations 2005 which establish a general principle governing the determination of criteria assessing the fitness of applicants for licences and others and the terms of licence conditions.

Rule 6 specifies when a new application will be required.

Rule 7 prescribes the licence fee, the renewal fee and rule 8 the charge for inspection at the point of application.

The Schedule contains licence conditions which will apply to licence holders if applicable to them. Paragraph 23 of the Schedule contains conditions which will apply only to shellfish gatherers.

A partial Regulatory Impact Assessment of the effect that this instrument will have on the costs of the shellfish business has been prepared and has been placed in the library of each House of Parliament. Copies of the original Regulatory Impact Assessment may be obtained from the Gangmasters Licensing Authority, PO Box 8538, Nottingham, NG8 9AF.


Notes:

[1] 2004 c.11.back

[2] 1971 c.80.back

[3] S.I. 2006/660.back

[4] 1974 c.53.back

[5] www.lpcode.co.ukback

[6] S.I. 2005/448.back

[7] 1985 c.6; section 736 was substituted by the Companies Act 1989 (c40), section 144(1).back

[8] 1992 c 52.back

[9] 1996 c.18.back



ISBN 0 11 075069 1


 © Crown copyright 2006

Prepared 8 September 2006


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