Department for Business, Innovation and Skills
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West Midlands agencies asleep at the wheel
The Government has warned eighteen employment agencies supplying drivers to businesses in the West Midlands for failing to comply with the law.
The warnings follow intelligence-led investigations by the Employment Agency Standards Inspectorate, in collaboration with the Gangmasters Licensing Authority. Investigators found that eighteen agencies in the area broke the law a total of 80 times between them.
These offences included:
* failing to confirm the identity of drivers;
* not checking
health and safety risks with hirers;
* failing to issue terms
and conditions; and
* not providing written agreements on pay.
Inspectors will be conducting further visits in the coming months to follow up on intelligence received during the investigations. They are considering further action in a number of cases.
Department for Business Minister Pat McFadden said:
"The recession must not be an excuse for denying people their employment rights.
"Cutting corners in this way exploits drivers, undercuts the agencies that play by the rules and, in this sector, could put people at serious risk on the roads.
"Follow up investigations will take place to make sure that the agencies concerned have changed their ways. Agencies that continue to flout the law could be prosecuted and hit hard with unlimited fines or banned from operating for up to 10 years."
People can report employment agencies they suspect of breaking the law by contacting the Pay and Work Rights helpline, free on 0800 917 2368 or emailing eas@berr.gsi.gov.uk.
Notes to Editors
1. The Employment Agency Standards inspectorate is part of the Department for Business, Enterprise and Regulatory Reform. The Inspectorate carries out inspections of agencies on the basis of perceived risk of non-compliance and investigates complaints about agency conduct. The Gangmasters Licensing Authority (GLA) regulates those who supply labour or use workers to provide services in agriculture, forestry, horticulture, shellfish gathering and food processing and packaging. For more information on their activity please see http://www.gla.gov.uk/
2. The inspectorate visited the West Midlands on 19th and 20th May 2009, visiting 21 agencies in total. Areas visited included Birmingham, Coventry, Rugby, Droitwich, Kidderminster, Wolverhampton and Shrewsbury. This operation was the latest in a series of targeted investigations carried out by the Employment Agency Standards team. Recent investigations were carried out in Manchester, Glasgow, London and Darlington. Sectors included construction, entertainment, modelling and teaching.
3. Agencies that break the law could face prosecution and, as of 6 April 2009, be subject to unlimited fines for the most serious offences. Rogue agencies could also be banned from operating for up to ten years.
4. For legal reasons, the Department for Business cannot name the agencies warned, unless they are prosecuted or prohibited.
5. Further guidance for agency workers can be found on http://www.direct.gov/agencyworkers. Guidance for employment agencies can be found at http://www.businesslink.gov.uk/employingpeople.
