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UK — GLA guidance on travel scheme and umbrella companies

26 November 2009

The Gangmasters Licensing Authority (GLA) has issued a guidance brief for GLA license holders who operate travel schemes and for those who use the payroll services of an umbrella company. Members are reminded that payroll companies who employ workers directly must hold a GLA license. The use of an unlicensed umbrella company would constitute an offence.

With effect from 17 February 2010 the GLA will access compliance with licensing standards in relation to travel schemes and will revoke licenses of any license holder whose workers are deemed to receive less than the national minimum wage under such schemes.

The GLA further stipulates that a license holder must not charge employees for providing work although they may charge for additional services. It is made clear that calculating and arranging pay is not an additional service but an integral part of the employer's responsibilities.

To read the full brief please click here



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