The ALP today issued updated temporary labour “Minimum Charge Rate” tables to take account of the new national minimum wage rates that come into force on October 1st.
These rates have been agreed with the Gangmasters’ Licensing Authority (GLA), Defra, the Scottish Executive and DARDNI.
Rates payable to labour providers for agency workers must cover the appropriate minimum wage, employer’s national insurance, statutory holiday entitlement, overhead costs and an element for labour provider profit.
The actual rate charged is ultimately a commercial agreement between the labour provider and user. However, charge rates much lower than those in the rates tables need to be investigated and are likely to indicate illegal activity.
David Camp, director of the Association of Labour Providers, said:
“We have reported cases to the GLA in which labour users are paying rates where there is no chance that taxes can be paid and the workers receive minimum wage, holidays and their other entitlements. In these cases the labour user is complicit in law breaking and faces serious disruption to their business and damage to their brand when eventually the authorities catch up with them. Anyone who is aware of such low rates being paid may advise the ALP or can report it directly to the GLA.”