Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
#1
Check your Gangmaster, South East Olympics firms told.
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South East employers who plan to take on more staff for the Olympic and Paralympic Games must check their labour providers, they were told today. Labour providers are agencies that supply temporary workers to meet seasonal and market demand - sometimes called "gangmasters".
With the Olympics leading to an increase in businesses needing temporary workers, HMRC is urging them to carry out checks on their labour suppliers. The department wants them to ensure, where possible, that the gangmasters are paying VAT and other taxes.
Businesses affected include those in catering, food processing, construction, hotels, leisure and security.
HMRC has warned there is a risk that employers could unknowingly hire workers who are in the UK illegally or are earning below the National Minimum Wage. This could result in enquires by HMRC and costs for the business, damaged reputation and even prosecution.
Marie-Claire Uhart, Director of Specialist Investigations, said:
"HMRC has found problems with fraud and unpaid taxes in the labour provider field and this might increase as companies employ more casual labour for the Games. HMRC routinely tackles attempts to defraud the Exchequer, including the use of false invoices and hijacked VAT registrations.
"South East businesses that use labour providers can help prevent these forms of tax abuse - and avoid involvement in fraudulent supply chains - by being alert and asking the right questions."
Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
#2
This is a crackdown on people trying to beat or even cheat the system. This will ensure, hopefully, that all workers are legally allowed to work here, that they pay their tax, and that they receive the minimum wage. Too many workers from foreign soil are exploited as we know, paid less than the minimum wage, which in turn makes British homegrown workers uncompetitive.
If quotes from a Gangmaster are artificially low it should raise questions.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#3
if employers went to a reputable uk agency then this couldn't happen, agencies check all documentation of potential employees.
Keith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,948
#4
i'm all for the above
but what about the customs sorting the other thread far bigger dosh?
ALL POSTS ARE MY OWN PERSONAL VIEWS
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#5
this is more important for humanitarian reasons, we all have read about migrant workers working long hours in fields for a pittance just to please greedy farmers who turn a blind eye to what is going on, then blame the gangmaster.
Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
#6
Yes Howard is right there Keef ..although they need to pursue the giants who use every fandangle loophole to avoid tax, see the other thread, and can afford to tie up the situation in legal knots...the smaller guy mustnt suffer either. This is almost a roundabout way of a good move and should protect English jobs. Gangmasters quote unbelievably low prices to farmers and others who are glad to take it at face value, it saves them money in hard pressed times, so they are not going to look the other way...but is it legal? The chances are if the quote for a job done is suspiciously low then its not right.
Foreign workers are treated like slaves and paid below minimum wage. Not good...but its a double whammy as...
English workers cant compete at those rates of pay so are priced out of the jobs.
Employers should ask the following say HMRC, but do they?
· Does the labour provider need/have a Gangmaster Licensing Authority (GLA) licence?
· What is the history of the business?
· Is it a live company on the Companies House register?
· Have you visited the trading premises? Are they consistent with the business of finding and employing workers?
· Do they obtain workers from other labour providers?
· Are their proposed fees realistic, allowing the business to meet statutory minimum wage and tax obligations and still make a profit?
· Do they have Employers' Liability Insurance?
· Are you making payments to a third party, for example a factoring agent? If so, why?
· Is the business VAT registered and set up for PAYE? Obtain a copy of the VAT certificate.
· Is the business paying its workers the National Minimum Wage?
· Do the workers being supplied have the right to work in the UK?
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
#7
looking at the list the item that stands out is about the minimum wage.
i am willing to stand corrected but i am fairly certain that most of the workers are not eligible.
the rogue employer pays the gangmaster his/her agreed fee, the gangmaster then pays the victims nothing remotely close to the minimum wage.
the contracts between them are not made in this country.