The Gangmasters (Licensing Conditions) (Amendment) (Fees) Rules 2025, effective April 28th, 2025, revise fees for gangmaster licences in England, Wales, Scotland, and Northern Ireland.
These rules amend the Gangmasters (Licensing Conditions) Rules 2009, increasing application, renewal, and inspection fees across several bands depending on annual turnover.
Consultation with the relevant Northern Ireland department occurred, and transitional provisions address applications and renewals already in progress.
Arguments For
Increased funding for GLAA: Higher fees provide the Gangmasters and Labour Abuse Authority (GLAA) with increased resources to combat exploitation and improve enforcement.
Improved enforcement capabilities: Additional funding allows for more inspections, investigations, and prosecutions, leading to a more effective regulatory environment.
Deterrence of illegal practices: Increased costs associated with licensing may deter businesses from engaging in illegal labor practices.
Reflecting operational costs: The fee increases aim to cover the increased costs of regulation and compliance for the GLAA.
Legal basis in 2004 Act: The changes are made under the powers granted by Section 8 of the Gangmasters (Licensing) Act 2004.
Arguments Against
Burden on legitimate businesses: Higher fees may disproportionately impact legitimate businesses, potentially hindering their operations and competitiveness.
Potential for unintended consequences: Increased costs could create a barrier to entry for new businesses, potentially reducing competition within the sector.
Lack of transparency in cost calculations: The rationale for the specific percentage increases may not be particularly clear.
Alternative funding mechanisms: Exploration of alternate funding mechanisms, such as increased government funding, could have been considered.
Economic impact on businesses: The increased fees can impact overall economic activity within the impacted industries.
- Citation, commencement and extent (1) These Rules may be cited as the Gangmasters (Licensing Conditions) (Amendment) (Fees) Rules 2025 and come into force on 28th April 2025. (2) These Rules extend to England and Wales, Scotland and Northern Ireland.
Section 1 establishes the official name of these rules as the Gangmasters (Licensing Conditions) (Amendment) (Fees) Rules 2025.
It states that the rules become effective on April 28th, 2025, and apply to England, Wales, Scotland, and Northern Ireland.
- Interpretation In these Rules, “the 2009 Rules” mean the Gangmasters (Licensing Conditions) Rules 2009.
Section 2 defines the term “2009 Rules” as referring to the Gangmasters (Licensing Conditions) Rules 2009—the document this amendment modifies.
- Transitional provisions Rule 4 is of no effect in relation to— (a) a licence application for which a fee has been paid in accordance with rule 6(2) of the 2009 Rules, but which has not been determined before the date on which these Rules come into force; or (b) a licence for which a renewal fee has been paid in accordance with rule 6(4) of the 2009 Rules, but which has not been renewed before the date on which these Rules come into force.
Section 3 outlines transitional arrangements for licenses that are already being processed in applying old rule 6(2) and rule 6(4) before the amendments come into effect.
Essentially, it specifies that the fee changes won't impact pending applications or renewals.
- Amendments to the Gangmasters (Licensing Conditions) Rules 2009 In rule 6(5) of the 2009 Rules, for the table, substitute— "Table" | Annual Turnover | Fee Band | Application or renewal fee | Inspection fee | |---|---|---|---| | £10 million or more | A | £4,000 | £4,500 | | From £5 million to less than £10 million | B | £3,100 | £3,720 | | From £1 million to less than £5 million | C | £1,860 | £3,330 | | Less than £1 million | D | £620 | £2,870"
Section 4 specifies the core changes: It replaces the fee table in rule 6(5) of the 2009 Rules with a new table.
This new table shows significantly increased fees for applications, renewals, and inspections, categorized by the applicant’s annual income band (A-D).
Explanatory Note (This note is not part of the Rules) These Rules amend the prescribed fees in rule 6(5) of the Gangmasters (Licensing Conditions) Rules 2009 (S.I. 2009/307). Rule 3 contains transitional provisions. Rule 4 increases the fee for (i) applying for licence, (ii) renewing a licence and (iii) an inspection. The increase is by 55% except for application or renewal fees in Band A which are increasing by 54%. A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.
The explanatory note summarizes the rule changes and states that no significant impact assessment is needed.
It clarifies that the fees for license applications, renewals, and inspections are increased in rule 4, by approximately 55% (54% for band A renewals).
It summarizes the transitional provision in rule 3
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