The Gangmasters (Licensing Conditions) (No.2) Rules 2006

Citation, commencement and interpretation

1.—(1) These Rules may be cited as the Gangmasters (Licensing Conditions) (No.2) Rules 2006 and come into force on 1st October 2006.

(2) In these Rules—

“the 2004 Act” means the Gangmasters (Licensing) Act 2004;

“applicant” means the business which applies for a licence;

“the Authority” means the Gangmasters Licensing Authority;

“business” includes a sole trader (including a person who is self-employed), a company, an unincorporated association and a partnership;

“labour user” means a person to whom workers or services are supplied;

“licence holder” means the business granted a licence;

“principal authority” means the individual responsible for the day-to-day management of a business;

“working day” means a day other than a Saturday or a Sunday, Christmas Day or Good Friday, or a date which is a bank holiday under or by virtue of the Banking and Financial Dealings Act 1971(1).

Revocation

2.  The Gangmasters (Licensing Conditions) Rules 2006(2) are revoked.

Application for a gangmaster’s licence

3.—(1) The principal authority is responsible for completing the information submitted in an application for a gangmaster’s licence.

(2) He and any person who is put forward to be named or otherwise specified in the licence must be a fit and proper person.

(3) He must disclose details of—

(a) any conviction which is not spent under the provisions of section 1 of the Rehabilitation of Offenders Act 1974(3);

(b) any judgment against him by any court; and

(c) any investigation undertaken or penalty imposed by a local authority or government department.

(4) He must disclose details of any previous trading in the sector that is regulated by the 2004 Act in the previous five years including full details of any business concerned.

(5) He, and in the case of a body corporate, all the directors, and in the case of a partnership, all the partners, must be 16 years old or older.

(6) He must inform the Authority of—

(a) the persons to be named and the positions to be otherwise specified on the licence;

(b) in the case of a body corporate, the names of the directors; and

(c) in the case of a partnership, the names of the partners.

(7) He must inform the Authority of the turnover of his business in the sector that is regulated by the 2004 Act for the previous financial year or in the case of a new business, the expected turnover.

(8) He must inform the Authority if the business has been subject to an audit under the Code of Practice of the Temporary Labour Working Group(4) or any other audit approved by the Authority and agree that details of that audit are disclosed by the auditor to the Authority.

(9) He must make available any records the Authority may request in support of the application to the Authority and persons acting on behalf of the Authority.

(10) Any director or partner of the business, and any person proposed to be named in the licence must provide to the Authority on demand any details specified in paragraph (3) or (4).

(11) The Authority can impose such conditions as it considers appropriate when it grants the licence and can also impose additional conditions after the grant of a licence.

Licence conditions

4.—(1) The licence holder must fulfil the following conditions.

(2) He and any person named or otherwise specified in the licence must at all times act in a fit and proper manner.

(3) He must notify the Authority within 20 working days if there are significant changes to details submitted with his application, except for the annual turnover which must be notified in accordance with paragraph (5).

(4) He must notify the Authority within 20 working days if the persons named or if the positions otherwise specified in the licence change and any new persons named must also disclose any details under rule 3(3) at the request of the Authority.

(5) He must inform the Authority, on demand, of the annual turnover of his business in the sector that is regulated by the 2004 Act for the previous financial year.

(6) He must notify the Authority as soon as reasonably practicable if he suspects his licence has been used by someone not authorised to act on behalf of that licence holder.

(7) He must provide details of his licence at the request of any constable, enforcement officer or compliance officer to that constable, enforcement officer or compliance officer.

(8) He, or a person named or otherwise specified in the licence, must provide—

(a) the licence number to the labour user when he enters into arrangements to supply workers or services;

(b) on demand, the licence number to any worker supplied by him to a labour user;

(c) on demand, the licence number to any worker used by him; and

(d) on demand, details of any additional licence conditions to the labour user or any worker supplied or used by him.

(9) He must permit the Authority to inspect the business at any reasonable time.

(10) He must comply with the conditions in the Schedule as applicable.

Criteria to be considered when assessing “fit and proper”

5.  When assessing whether an applicant and a licence holder is fit and proper to hold a gangmaster’s licence, the Authority shall have regard to these Rules and the obligations contained in regulation 12 (2) of the Gangmasters (Licensing Authority) Regulations 2005(5).

New applications

6.—(1) A licence expires and must be reapplied for if any of the following details of the licence holder change—

(a) his Companies House number;

(b) his Unique Tax Reference; or

(c) his Value Added Tax number.

(2) A new application fee is payable if a licence is reapplied for after it expires.

The application fee and renewal fee

7.—(1) A licence shall last for one year and shall then expire, unless rule 6 applies or the licence is revoked by the Authority.

(2) The fee payable in relation to the application for a grant of a licence is payable with the application.

(3) The application fee is based on the turnover, or expected turnover, of the business in the sector that is regulated by the 2004 Act for the previous financial year as placed in bands A, B, C or D in the table below.

(4) When an application for a licence for gathering shellfish is received on or before 30th November 2006, the application fee is reduced by £250.

(5) The renewal fee is based on the turnover of the business in the sector that is regulated by the 2004 Act for the previous financial year as placed in bands A, B, C or D in the table below.

(6) The full renewal fee must be paid by the expiry date.

(7) Application fees and renewal fees are not refundable.

(8) These fees are subject to any relevant taxes and duties.

Licence fees payable

Annual turnover of business	Fee Band	Annual Fee
£10 million +	A	£4,000
£5 – 10 million	B	£2,000
£1 – 5 million	C	£750
Less than £1 million	D	£250

Application inspections

8.—(1) The applicant must permit, and pay for, an inspection of the business as part of the application process if the Authority considers it necessary.

(2) The fee for an application inspection as provided for in paragraph (1) is based on the fee bands below.

(3) These fees are subject to any relevant taxes and duties.

Annual turnover of business	Fee Band	Fee
£10 million +	A	£2,500
£5 – 10 million	B	£2,100
£1 – 5 million	C	£1,850
Less than £1 million	D	£1,600

Civil liability

9.—(1) Without prejudice to—

(a) any right of action; or

(b) any defence,

which exists or may be available apart from the provisions of the 2004 Act and these Rules, contravention of, or failure to comply with any of the provisions of the Act or of these Rules by a licence holder shall, so far as it causes damage, be actionable.

(2) In this paragraph, “damage” includes the death of, or injury to, any person (including any disease and any impairment of that person’s physical or mental condition).

Effect of prohibited or unenforceable terms and recoverability of money

10.—(1) Where any term of a contract is prohibited or made unenforceable under these Rules the contract shall continue to bind the parties if it is capable of continuing in existence without that term.

(2) Where a labour user pays any money pursuant to a contractual term which is unenforceable by virtue of paragraph 8 of the Schedule to these Rules, the labour user is entitled to recover that money.

Electronic and other communications

11.—(1) Except where otherwise provided, any requirement in these Rules—

(a) to notify or give notice to a person of any matter;

(b) to give or send a document to a person;

(c) to inform a person or provide a person with information; or

(d) to make enquiries and to receive answers,

may be satisfied by one of the means in paragraph (3).

(2) Any reference in these Rules to a person giving consent or obtaining another person’s consent to something shall be construed as a reference to giving or receiving that consent by one of the means in paragraph (3).

(3) The means referred to in paragraphs (1) and (2) are —

(a) giving or receiving in person the notice, document, information, enquiry, answer or consent in paper form; or

(b) sending, transmitting or receiving the notice, document, information, enquiry, answer or consent by post, facsimile or by other electronic means to an address provided for that purpose by the intended recipient,

provided that any information so given, sent or transmitted is in a form which is clearly legible by the intended recipient.

Paul Whitehouse

Chairman

Gangmasters Licensing Authority

5th September 2006