Labour Providers' Code to Ethical Trade

Quest Employment Ltd, has successfully passed The Code of Practice for labour providers audit.

The accolade, which was announced in February 2006, is in recognition of the firm’s commitment to supply quality temporary staff to the agriculture and fresh produce trade.

The Code is a voluntary measure, supported by the industry, that aims to improve the business practices of labour providers and labour users before compulsory licensing takes effect. It sets out clearly the standards that labour providers must meet in order to comply with the law and accepted good practice. The standards set a benchmark for independently assessing the employment practices of labour providers.

The Code, along with accreditation to REC (Recruitment & Employers Confederation) and the prestigious Investors In People Award, maintains Quest’s position as one of the leading Agencies committed to providing an exemplary service to the food industry.

The Code of Practice for Labour Providers to the Agriculture and Fresh Produce Industry

 Compliance with the Code will help labour providers prepare for the statutory regime when it is introduced.

• All workers must have a valid permanent national insurance number or be in the process of applying for a number
• Where workers are employed for more than a month there must be written particulars of employment and terms and conditions stating the required notice of termination of employment
• Where deductions from pay are made for accommodation, travel or any other item, other than tax or national insurance, the written consent of the workers must be obtained
• The national minimum wage or where appropriate agricultural minimum wage must be paid
• All workers must be legally entitled to work in the United Kingdom
• Workers must be provided with an itemised pay statement, listing all deductions, including income tax and National Insurance contributions, for each pay period
• There must be no physical abuse or discipline, threat of physical abuse, sexual or other harassment or verbal abuse or other forms of intimidation
• There should be a written contract agreement with each customer, including terms and conditions such as payments, health and safety responsibilities, disciplinary procedures and the use of subcontractors
• There must be risk assessments conducted by the Labour Provider for all premises to which workers are provided
• Work may be subcontracted only to a labour provider that has committed to comply with the Code
• Income tax and national insurance contributions must be deducted and paid to the Inland Revenue in respect of all workers once earnings reach the earnings threshold during a week or any part of a week
• VAT registration must be maintained if taxable turnover exceeds a threshold of £58,000 per annum in and VAT payments must be made on taxable turnover
• Workers must not be required to surrender identity papers such as passports.

Industry Views

Morissons - Practical implementation of our Ethical Trading Code focused on worker welfare and labour conditions within the supply chain. Most recently we supported the introduction of the new ‘Gangmaster Licensing’ arrangements. The use of seasonal labour is an integral part of the UK fresh food industry and we are keen to ensure that proper practices are put in place to support the law abiding practices of responsible ‘Gangmasters’. We therefore signed up to the government’s Code of Practice for Labour Providers.

Sainsburys - Gangmasters and employment agencies provide temporary workers to meet seasonal demands of planting, harvesting and packing. The system is legal, but there are concerns that some providers are operating outside the law. The tragedy (unconnected to Sainsbury’s) at Morecambe Bay in February 2004 - when 23 Chinese immigrant cockle-pickers drowned - brought the issue to the public’s attention. We have been aware of the issues surrounding the use of seasonal and temporary workers by our suppliers, and held an awareness-raising workshop for produce suppliers in 2001. We then joined the Ethical Trading Initiative Temporary Labour Working Group, set up in 2002 specifically to address labour conditions for seasonal and foreign labour in the UK Food Industry. The group developed a code of practice and a licence and registration system for temporary labour providers. We support new legislation on gangmasters which will come into force in 2006. We have organised a number of free workshops for gangmasters to help them meet the new requirements.