Following the Business, Innovation and Skills (BIS) Select Committee’s findings regarding Sports Direct, the Recruitment & Employment Confederation (REC) has undertaken an investigation into Transline. On Monday 21 November, the REC informed Transline that this investigation was completed and that no further action would be taken.

The REC looked at issues raised by the Select Committee including Transline operating without a Gangmasters Licensing Authority (GLA) licence, and failure to pay full National Minimum Wage to agency workers when security searches were carried out at the end of shifts at Sports Direct’s Shirebrook warehouse.

By supplying workers without a GLA licence for two months in 2013, Transline breached Principal 1 of the REC Code of Professional Practice, as well as GLA licensing conditions. The REC has taken into account the fact that the GLA chose not to prosecute Transline, and is satisfied with evidence showing that this was an unintentional mistake.

Regarding payment of National Minimum Wage to agency workers, the REC accepts that this was an oversight, and is satisfied with the measures put in place by Transline to pay workers for time spent due to security searches. Transline is working closely with HMRC to ensure that everyone who is owed money is reimbursed.

In light of the evidence and Transline’s commitments to properly correct the errors made and having found no further breaches of the REC Code, the REC has closed its investigation into Transline.

The REC welcomes the announcement that Sports Direct will commission an independent review into working practices and corporate governance. If any additional information comes to light regarding the behaviour of REC member agencies, the REC retains the right to investigate and take action if required.