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UK – Labour to stamp out rogue employment agencies

24 November 2014

Exploitation of low-paid workers by rogue employment agencies will be stamped out by an incoming Labour government, Labour leader Ed Miliband will promise today, reports The Independent

Mr Miliband will reportedly commit himself to closing the loophole that allows agencies to undercut the wages of permanent staff, and to put those who flout the law out of business.

According to The Independent, the number of agency staff has risen in the last year to at least a million.

Mr Miliband will reiterate Labour’s commitment to banning agencies from only recruiting overseas. He will accuse the Government of wanting Britain to “compete in a race to the bottom with low wages, low skills and less security”.

He will add that: “Labour will not tolerate a world of work that is becoming more brutal because of the way some cowboy employment agencies have been allowed to operate. There is now overwhelming evidence that some are operating in the shadows of our economy and on the margins of law, damaging the basic fabric of British life that hard work should be properly paid. They are breaking the law on the minimum wage, failing to pay their taxes and exploiting workers to undercut the wages of permanent staff. These rogue agencies need to know their time is up and we will act.”

Mr Milliband is also expected to announce that Labour is considering a licensing system that would stipulate basic standards of contracts for employees and have the power to shut down agencies that refuse to comply.