Who We Are

The Gangmasters and Labour Abuse Authority (GLAA), formerly the Gangmasters Licensing Authority (GLA), works in partnership to stop worker exploitation.

The Gangmasters (Licensing) Act 2004 was introduced following the death of 23 cockle pickers in Morecambe Bay in February 2004 and created a licensing scheme to regulate the supply of temporary labour to the agricultural, food processing and packaging, and shellfish gathering sectors across the whole of the UK.

The Act created four criminal offences: operating as an unlicensed gangmaster - Section 12 (1); entering arrangements with an unlicensed gangmaster - Section 13 (1) obstructing GLAA officers Section 18 (1); and possessing false documentation- Section 12 (2).

New powers to investigate labour market offences in England and Wales were given to the GLAA through the Immigration Act 2016 and these commenced on 30 April 2017. The GLAA retains its licensing and regulatory function but also has a much broader role in terms of addressing labour exploitation.

Labour Market Offences are defined as:

• Offences under the Gangmasters (Licensing) Act 2004
• Offences under the National Minimum Wage Act 1998
• Offences under the Employment Agencies Act 1973
• Offences contrary to Section 1,2 and 4 of the Modern Slavery Act 2015 (when applied to labour exploitation)

These additional powers are exercisable in England and Wales only but apply across the entire labour market regardless of worker status.

The GLAA must prioritise the most serious offences and act in accordance with the Enforcement Strategy as defined by the office of the Director or Labour Market Enforcement (ODLME).

The GLAA provides the assessment to its partners to assist their understanding of our operational priorities. In determining its organisational strategic priorities, the GLAA must also take account the priorities published by the ODLME in their annual strategy. This is to ensure that objectives, priorities, and recommendations are closely aligned with the current intelligence picture.

The ODLME has strategic oversight of the activities of the National Minimum Wage function currently performed by HMRC, the Employment Agencies Standards Inspectorate (EAS) – currently a department of BEIS, and the Gangmasters and Labour Abuse Authority (GLAA).

Introduction

The Strategic Assessment is an overview of significant risk, threat and harm issues impacting on the Gangmasters and Labour Abuse Authority (GLAA), considering Government objectives and other relevant, external factors. The assessment seeks to facilitate the review, and where appropriate, the amendment of the organisational Control Strategy, and define the future GLAA Intelligence Requirement.

Aim

Strategic Tasking and Co-ordination aims to support decision makers in the management and control of risks, threats and strategic issues identified as impacting, or having the potential to impact significantly on the GLAA.

Scope

The reporting period covers the period between 1 April 2022 and 31 March 2023 and compares against data from the same period the previous year.  There are some instances where different date parameters have been used to provide the most timely and accurate picture, and this will be noted in the document.

Recommended Priority Areas for 2023/24

• Exploitation of seasonal workers in the agricultural sector
• Forced or compulsory labour in the residential care sector
• Mapping and Operational Activity around OCG’s that are linked to labour exploitation/forced labour
• High risk, non-compliant labour providers, including unlicensed activity, in the regulated sector

Key Judgements

KJ1- Risk has increased across two current priority areas: residential care homes and seasonal workers. These areas should remain Control Strategy priorities. 

KJ2 - Forced labour is most frequently reported within the care sector and volumes are expected to grow. Risks to workers in terms of physical and financial exploitation has increased. Often workers are indebted to employers and working excessive hours; work can be physically demanding.

KJ3 - Seasonal workers are incurring debts for recruitment and service fees which can be extortionate and result in debt bondage, increasing the financial risk. The GLAA has fewer connections in countries where workers are currently being recruited, presenting a barrier to reducing risk.

KJ4 - The risk has deceased across shellfish gathering, mini umbrella companies and forced labour in the agricultural and hand car wash sectors. It is recommended that these are removed from the Control Strategy

KJ5 - The volume of reporting around shellfish gathering has decreased. Reports generally concern issues around permits, planning and supervision. There are no allegations specific to the safety of the gatherers and limited intelligence around unlicensed gangmasters.

KJ6 - The anticipated increase in the use of umbrella companies and subsequent reporting has not materialised. The intelligence picture suggests worker exploitation within the GLAA remit is limited.

KJ7 - Forced labour in hand car washes- reporting has remained stable and there are no increases anticipated. Allegations received often fall outside of the GLAA remit and improved sharing of these referrals with relevant partner agencies has allowed more focus on issues of forced labour. Continued visits to premises has improved knowledge of the sector and found limited evidence of forced labour.

KJ8 - Forced labour in the agricultural sector- The main risk within the sector is around seasonal workers. Increased GLAA visits to labour providers has improved understanding of the sector and identified reliable intelligence streams concerning non-compliance and unlicensed trading. Issues around pay tend to be most prevalent and there is limited evidence of forced labour.

KJ9 - The increase in allegations around forced labour, irregular migrants, accommodation, and physical and mental mistreatment could potentially be linked to work by the GLAA to increase awareness, more visits to labour providers (particularly in the agricultural sector), the work of the victim navigator, and improved intelligence streams from stakeholders.

KJ10- It is likely that organised crime groups are operating within the GLAA remit which could infer links to serious and organised crime. Due to intelligence gaps the GLAA is unable to reliably asses the risk at the present time.

KJ11 - 35% of investigations into unlicensed supply of labour also had forced labour indicators. This infers wider criminalty and possible links to organised crime, however reviewing the outcomes of these investigations, there is limited evidence to support this.

PART 1

Exploitation in GLAA Regulated Sectors

Current Assessment

Licensing

There are currently 1,100 labour providers (LPs) licensed by the GLAA. The majority have a registered office in England, with the highest proportion in the East Midlands, predominantly  Lincolnshire (see Table 1); there are also higher numbers in Lancashire and Kent. These areas are known for farming, however it is important to note some LP’s may supply workers outside of the region they are based.

The total number of workers in the agricultural sector is 301,000, of which 67,000 are deemed regular and 41,000 casual workers.[1] The food and drink manufacturing sector employs approximately 414,000 workers. There are approximately 8,285 small and medium enterprises (SME’s) and 260 larger businesses in the sector.[2] There are approximately 216,000 farm holdings.[3]

Region	Count
East of England	107
East Midlands	134
South East	123
South West	70
North West	75
North East	13
West Midlands	87
Yorkshire and Humber	44
Scotland	27
Wales	16
Northern Ireland	13

134 application inspections were conducted over the reporting period[4]; 78 supplying agricultural labour, 50 supplying to the food processing and packaging sector and 1 to shellfish,[5] the majority resulted in a full licence. Consistent with previous reporting, the top 3 locations of the registered office are Greater London, Lincolnshire, and Kent.

10 applicants were refused a licence,[6]  all on Principle Authority (PA) competency grounds, with 2 also failing the fit and proper standard. This is consistent with the previous reporting period.

16 of these applications were from LP’s based overseas (17 applications the previous year), with all but one supplying to the agricultural sector. 2 of these licences were refused, one due to worker fees and the other on PA competency grounds.

[1] Agricultural workforce in England at 1 June 2022 - GOV.UK (www.gov.uk) The remaining workforce consists of farmers, partners, directors, spouses, and salaried managers.

[2] Food statistics in your pocket - GOV.UK (www.gov.uk)

[3] Chapter 2: Structure of industry - GOV.UK (www.gov.uk)

[4] Source: CARD for Compliance

[5] Remaining are unknown.

[6] Decision made between 1 April 2022 and 31 March 2023 – Licensing Decision Spreadsheet

There was one revocation with immediate effect due to fit and proper issues and charging fees to workers in the poultry sector. The agency was based in Nepal. Five licences were revoked without immediate effect, all UK based. Reasons include fit and proper issues and HMRC non-compliances. This a slight increase from the previous year wherein two were revoked without immediate effect and none with immediate effect.

License revocations and refusals:

	Fit and Proper	Competency	Correcting   ALCS	Changes      to  Details	HMRC Issues	Fees
Refusal	2	10	0	0	0	0
Revocation Immediate Effect	1		0	0	0	1
Revocation Without Immediate Effect	3		1	1	2	0

 

27 LPs had additional licensing conditions added (ALCs), all but one of these were applied at application stage. The most common reasons were contractual arrangements and worker records, followed by HMRC non-compliances and payment below National Minimum Wage (NMW).

Allegations

The GLAA received 427 individual allegations of labour exploitation in the licensable sectors between 1 April 2022 and 31 March 2023 [1]  Of these, 243 reported critical breaches of  licensing standards [2], linked to 103 individual licensed labour providers; implying 9% of licensed LP’s are likely to be high risk to the GLAA (13% the previous year).

[1] More than one allegation can be received per referral.

[2] As defined by current GLAA Licensing Standards

The sharpest rise was in allegations of forced labour, physical and mental mistreatment, accommodation, and immigration issues.[1]  Physical and mental mistreatment and employment of irregular migrants is often reported alongside other exploitation types such as financial abuse and involves threats to and/or intimidation of workers as a form of coercion. Reporting is spilt evenly across the agricultural and food processing and packaging sectors; limited reporting in shellfish gathering.

Source: [1] Right to Work in the UK

Allegations that indicate forced labour[1]  are also spilt evenly between agriculture and food processing and packaging; there were no allegations in the shellfish sector. (See Section 2 on Forced Labour).

Thematically, across all GLAA Licensing Standards, financial exploitation is most reported, which is consistent with the previous year, largely concerning payment below NMW and the charging of recruitment/ service fees (both critical breaches of GLAA licensing standards). The number of allegations for both increased this reporting period when compared to the same time last year (46% and 31% respectively). Payment of fees are frequently reported by seasonal workers in the agricultural sector.

There has been an increase in reports across most thematic areas.[2] The only notable decline is allegations concerning worker contracts and record keeping, which began to rise during the pandemic and could be a result of amendments to contracts to reflect changes in working practices at the time. There has also been a decline in health and safety referrals across both the agricultural and food processing and packaging sectors. Reasons for this are unknown at present.

Allegations around the fit and proper status of the PA also increased. Application inspections appear effective in preventing unsuitable PA’s entering the supply chain as there is limited evidence of these issues being identified once the PA is licensed, just 4 revocations.

Referrals regarding workers in the shellfish gathering sector decreased by 62% over this period, compared to last year.[3] Allegations are most frequently comprised of issues with permits and the planning and supervision of gatherers. There have been no specific allegations made regarding the safety of gatherers. One new application in the sector was received and a full licence granted. There have been no compliance inspections.

During the last reporting period a rise in the number of subsistence schemes/ umbrella companies both approaching LPs to provide services and being used by LP’s was noted. The model offers significant savings to businesses in terms of tax and national insurance contributions. There are 10 intelligence reports relating to umbrella companies and 6 referrals[4], indicating the risk to the GLAA is minimal. However, it is possible that over the next reporting period the utilisation of such business models increases to recoup financial losses incurred as part of the cost-of-living crisis.

Seasonal Worker Scheme

Exploitation of seasonal workers remains a risk to the GLAA. The SWS was introduced in 2019. Currently, 40,000 workers are covered by the scheme.

The GLAA received 133 individual allegations ¹⁶ linked to the original Seasonal Worker Scheme (SWS).

Recruitment/service fees are most commonly reported, followed by the fit and proper status of the PA, and working conditions.

Worker’s nationalities are predominantly Eastern European, South-Eastern European, and Central and South Asian. General peaks in allegations tend to occur in the summer months when much of the produce grown in the UK is in season. The GLAA has received reports of workers being charged up to £4,000 in recruitment fees, leading to debt-bondage. These practices increase a worker’s vulnerability to sustained exploitation over the working season but could continue beyond if debts remain unpaid.

[1] Debt Bondage, Restricted Movement, Withheld ID

[2] The table does not include “other” allegations including those specific to shellfish gathering and subcontracting as they are limited and low in numbers. 

[3] 19 referrals received

[4] Between April and December 2022.

 

Unlicensed Supply of Labour into the Regulated Sector

70 referrals concerning the unlicensed supply of labour have been made over this reporting period, consistent with the previous year. 43% of these reports (n30) also alleged other breaches of licensing standards, most commonly the fit and proper status of the gangmaster and charging of fees. 17 allegations of a Labour user (LU) utilising an unlicensed gangmaster were made.*[1]

*[1] The Labour User is not always known or identified in the report.

The sector is recorded in 58 of the referrals, spilt evenly between food processing and packaging (n30) and agriculture (n26), the lowest in shellfish gathering (n2).  Where subsectors are named, the highest number is in meat and poultry processing (n9) and fruit and vegetable growing (n10).

Unlicensed trading is reported, to some extent, across the UK. 79 investigations into unlicensed trading commenced over the reporting period, 35% of which had modern slavery indicators.

• 7 investigations related to acting as an unlicensed Gangmaster only (S12). A further 4 also had modern slavery indicators
• 45 investigations into acting as an unlicensed Gangmaster and using and unlicensed Gangmaster (S12 and 13) A further 23 also had modern slavery (MS) indicators which may infer wider criminality around unlicensed trading, although the limited number of National Referral Mechanism (NRM), Duty to Notify (DtN) referrals and STROs issued in these investigations does not currently support this

Offence	Warning Notice	Enforcement Notice	Notification of Offences	NRM	DtN	STRO	Prosecution
S 12	1	4	3	0	0	0	0
S12 and 13	16*	19	10	0	17*	0	0
S12, S13, MS	0	1	0	1	127***	2	0
S12, MS	0	0	0	1	1	0	0

 

*Please note that multiple sanctions can be applied to an investigation

*14 Warning Notices in one investigation  

**All 17 referrals made during one investigation- Food Processing Sector

***126 of these referrals made during one investigation- Poultry Secto

 

PART 2

Forced or Compulsory Labour across the Wider Labour Market

Forced labour is defined as: “All work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered themselves voluntarily”. ILO Forced Labour Convention.

Current Assessment

Forced or compulsory labour remains an area of risk for the GLAA. Labour exploitation is the most common form of modern slavery reported by adults referred nationally to the NRM and most frequently reported Duty to Notify referrals,[1] accounting for 31% and 33% of all adult referrals respectively.

The GLAA intelligence picture identifies potential victims of forced labour are most frequently reported to be Indian nationals,[2] likely to be driven by the increase in allegations in the care sector. Previously Romanian nationals were consistently the highest reported.

National NRM statistics recognise British nationals as the most referred PV, followed by Romanians.[3]

174 referrals were received containing allegations of forced or compulsory labour, linked to 21 sectors within the wider labour market.[4] This is an increase of 134% compared to the previous year when 79 referrals were received. Residential care homes are currently regarded as a priority over other sectors due to the volume of referrals, accounting for 29% of all forced labour reporting, more than double the number of referrals concerning car washes, which is the next most reported sector[5]. Furthermore, the control exploiters have over workers’ regarding the withdrawal of visa sponsorship is significant and used as a method of control.

[1] Modern Slavery: National Referral Mechanism and Duty to Notify statistics UK, Quarter 1 2023 – January to March - GOV.UK (www.gov.uk)

[2] Between October 2022 and March 2023

[3] Modern Slavery Statistic- October 2022 – March 2023 -Cover all Modern Slavery Themes

[4] Sector unknown or not recorded in in 22 referrals

[5] Between April and June 2023

The table below lists the top five sectors wherein forced labour was reported during 2022/23, all are outside of the GLAA regulated sectors.

 

The sharpest increase has been allegations in the residential care. The current intelligence picture suggests workers in this sector are highly likely to be Indian nationals, both male and female, on student visas. Often these students work more than the twenty hours allowed by the visa.

Exploiters are mostly reported to be British with limited information around age and gender.

Car Washes and construction both feature in the top-three reported sectors in the GLAA quarterly forced labour assessment, however to a much lesser degree than care. Car wash reports indicate being controlled by the exploiter and allegations of living at the work premises. Victims tend to be male and described as Eastern European and may be particularly vulnerable to exploitation due to irregular migration status and/or language barriers. Exploiters also tend to be male, but there is an intelligence gap around age and nationality. Many of the allegations received fall outside of the GLAA remit, for example health and safety and payment below NMW.

PVs in the construction sector tend to be male and of Eastern European nationality, exploiters are also male, there is limited intelligence around nationality and age. Long hours, poor accommodation and being dependent on the exploiter are most reported.

The GLAA made 26 NRM referrals over this period, 20 of these concerned workers in the residential care sector.

158 DtN referrals were made; 80% of these during one investigation in the poultry sector.

 

234 investigations into forced labour commenced. Of those concluded, 125 resulted in no action, 34 warnings, 10 in other sanctions[1] and 5 in enforcement activity by another agency.[2]

There are currently 34 active STRO’s and 2 STPO’s in place.

[1] Five enforcement notices, three notification of offences, one LMEU, one STRO.

[2] Three of these were partner-led prosecutions

The latest GLAA assessment suggests exploiters across all sectors are more likely to be male. Reporting around nationality remains a significant intelligence gap but where known, is reported to British.

Horizon Scanning

The below is an assessment of risk areas likely to impact on GLAA business over the coming months and considers themes under the PESTELO[1] model.

Labour Shortages

Britain’s exit from the EU has reshaped the landscape of the fresh produce industry and affected the supply chain. Custom delays and increased tariffs have exacerbated financial pressures and had an impact on the freshness of produce, resulting in increasing food prices.

Alongside the war in Ukraine, it has also aggravated the labour supply shortage, particularly in the agricultural sector. Before the EU exit, 20% of the permanent workforce in agriculture were EU nationals, in addition to this approximately 95% of seasonal workers were from the EU. 40% of the food manufacturing workforce were migrant workers. [2]  In 2021 and 2022 Ukrainian nationals were the most common recipients of Seasonal Worker Visas (42%). [3]

An increasing number of workers are being recruited from outside the EU to fill gaps in the labour market and there is potential for exploitation to increase as supply chains become more complex. Currently, the GLAA has less preventative reach and limited partnership working with relevant authorities in these countries and there may be language and cultural barriers that impede effective prevention of exploitation. It is likely that recruitment from countries outside of the EU will continue to grow in the coming months, particularly in the agricultural sector.

It is likely the seasonal worker visa will become increasingly vulnerable to abuse by criminals, leading to worker exploitation across the supply chain. Criminals are offering non-existent jobs, training, and support services for substantial amounts of money. These workers are likely to be susceptible to exploitation when arriving in the UK.[4]

There are also reports that criminals are using the skilled worker visa scheme as a way of smuggling people into the UK for large amounts of money. Migrant workers have arrived in the UK without the requisite skills for the work visa granted, leaving them without employment and open to labour abuse. [5]

There continues to be significant labour shortages outside of the licensable sector, for example care and construction. Some construction roles have been added to the shortage occupation list.

AI

It is highly likely that artificial intelligence (AI) will be increasingly utilised, particularly in sectors such as agriculture and food processing and packaging. This is likely to result in a reduction in workforce and existing workers being displaced into other sectors, some of which may be high-risk. Licensed gangmasters may also expand their supply outside of the regulated sectors.

[1] Political, Economic, Social, Technological, Environmental, Legal, Organisational

[2] EU exit - what do new UK rules for overseas workers mean for Agriculture and Horticulture? | AHDB

[3] Ukrainian migration to the UK - Migration Observatory - The Migration Observatory (ox.ac.uk)

[4] Concerns over criminals using seasonal worker visa to exploit labourers | News | The Grocer

[5] 'Fake' families smuggled into UK under skilled worker visa, investigation shows - InfoMigrants

 

Settled Status

7.2 million applications for settled status have been received, 89% in England. Of these applications 91% were from EEA nationals, with the highest number of applications from Romanians and Poles. For non-EEA nationals the top three nationalities were Indian, Pakistani, and Brazilian. [1]

The number of EU nationals who continue to reside in the UK without pre-settled or settled status is unknown. Those who did not apply before the deadline in June 2021, must prove reasonable grounds for not applying previously. There may be several reasons why an individual did not apply for settled status, including fear of being rejected, lack of awareness across some social, economic, and demographic groups and victims of exploitation and trafficking; furthermore, slavery survivors may not have evidence that they have been living in the UK. [2]  This group of individuals are more vulnerable to exploitation.

Illegal Immigration Act 2023

One of government's top priorities is to stop migrants arriving in the UK on small boats.

Under the Illegal Migration Bill 2023 those entering the UK by irregular means will be detained and removed to their home country, or a safe country where an asylum claim may be made, including those who are victims of modern slavery and/or trafficking.

Existing support and assistance for victims will be removed if they have arrived irregularly unless they are cooperating with a criminal investigation or prosecution which requires them to remain in the UK.[3] This could further impede the successful prosecution of offenders.

This may dissuade irregular migrants from reporting exploitation, including forced or compulsory labour. There is also the likelihood that those deported are re-victimised and provides opportunities for the exploiter to coerce the victim into compliance.

Cost of Living Crisis

The cost of living in the UK increased sharply during 2021 and 2022. A growing number of households have been driven into poverty or precarious living conditions, sometimes homelessness.

Financial pressures, especially for those employed in professions deemed to be low-skilled may result in increased vulnerability to exploitation as people become more willing to accept exploitative practices to secure or retain work.

Businesses are also under increasing financial pressure as costs rise and may be more inclined to use business models such as umbrella companies, or increased use of outsourcing to save on costs. This makes the supply chain more complex and the responsibility for worker welfare can become indistinct. Investigations become more complex, and evidence more difficult to obtain.

Issues around climate change and decarbonisation may further increase costs in the supply chain. There is a likelihood that an amalgamation of these issues may result in a growing number of businesses going into liquidation. Unscrupulous elements could use this as an opportunity to fill gaps in the supply chain.

[1] EU Settlement Scheme quarterly statistics, March 2023 - GOV.UK (www.gov.uk)

[2] The Migration Observatory

[3] Widespread human rights failings must be addressed in Illegal Migration Bill, Human Rights Committee finds - Committees - UK Parliament

 

Glossary of terms

DtN	Duty to Notify
HCW	Hand Car Wash
HMO	House of Multiple Occupancy
MoRiLE	Management of Risk in Law Enforcement
MUC	Mini Umbrella Companies
NINo	National Insurance Number
NMW	National Minimum Wage
OCG	Organised Crime Group
PACE	Police and Criminal Evidence Act 1984
PPE	Personal Protective Equipment
RFIO	Regional Field Intelligence Officer
SWS	Seasonal Workers Scheme
SME	Small Medium Enterprise