Guidance

Guidance on the scope of FWA gangmasters licensing standard 7.1

Published 23 June 2026

The Fair Work Agency (FWA) licensing standards for gangmasters are the conditions labour providers need to meet to get or renew a gangmaster’s licence.

Standard 7 covers recruiting workers and contractual arrangements.

Standard 7.1 sets out the rules for licence holders on charging fees and providing additional services. 

This guidance talks about:

• charging fees to a worker for work finding services
• optional services that cannot be charged for
• placing conditions on work finding service
• due diligence checks on labour suppliers

The term ‘work finding services’ means services (including giving information) provided by a licence holder to:  

• a person for the purpose of finding that person employment or seeking to find that person employment  

• an employee of the licence holder for the purpose of finding or seeking to find another person, with a view to the employee acting for and under the control of that other person 

• a person (‘A’) for the purpose of finding or seeking to find another person (‘B’), with a view to A becoming employed by the licence holder and acting for and under the control of B

Charging fees to a work seeker for work finding services

Licence holders cannot charge a work seeker a fee for:

• finding them a job

• processing job applications

• each shift they do

It does not matter if the licence holder is based in the UK or outside the UK. For example, a licence holder based outside the UK cannot charge an introduction fee to a work seeker for work with a UK-based licence holder or labour user.

It also does not matter if the person is being supplied for temporary or permanent work.

Optional services that cannot be charged for

Optional services that are integral to the work-finding process cannot be charged for.

Examples of such services include:

• providing information, advice and guidance on vacancies and work placements

• checking required documents, such as identity documents or medical certificates, regardless if these are mandatory in the UK or country of origin

• doing reference or criminal record checks – except where the check is a legal requirement in the UK or country of origin

• interview and assessment

• completing documents required as part of the recruitment process which the licence holder would otherwise complete for free if the work seeker did not opt for the service

• charging each work seeker for translating a standard document that’s used by all workers, so is only translated once

• sending documents to the hiring employer that the licence holder would otherwise send if the work seeker did not opt for the service

• any fee associated with guaranteeing a placement or work for the following year

• providing information on details about a job

Charging a work seeker for any these services will be a breach of standard 7.1.

Placing conditions on work finding services

Licensing Standard 7.1 also prohibits providing work on the condition that the work seeker uses other goods or services from the licence holder or from a person connected to them.

A ‘connected person’ includes:

• family

• an employee or employer

• a partner, in the case of partnerships

• any connected companies, which includes subsidiary or holding companies

For example, it would be a breach of standard 7.1 if work was conditional to the work seeker:

• staying in particular accommodation if it’s not an essential requirement for the job

• paying rent or other charges to secure the job

• using particular transport to travel to the UK or to and from work

• paying a fee to be paid wages

• taking out a loan from a person connected to the licence holder to cover costs of travel or any other service

• buying workwear, tools or equipment necessary for the job from a person connected to the licence holder

• undergoing and paying for training necessary for the job from a person connected to the licence holder

If additional goods or services are offered to a work seeker, the licence holder must be able to show that it was properly explained to them that it’s optional. It’s not enough to put this in documents given to workers.

Work seekers who take up goods or services offered must not be favoured or get preferential treatment.

When standard 7.1 is not breached

Licensing Standard 7.1 is not breached if the goods or services are truly optional and distinct from activities necessary for finding a person work.

Examples include:

• planning and organising travel
• organising accommodation
• pastoral care that provides ongoing support while living in the UK

Due diligence on labour providers

Licence holders and labour users must take steps to satisfy themselves that workers provided to them are not being charged disguised job finding fees.

These could include:

• expenses schemes or personal accident insurance
• pastoral care that offers no meaningful support for the worker

Signs that this is happening include high rates of worker participation.

Any UK-based licence holder or labour user who use overseas labour providers without paying a fee must also be satisfied that the labour provider’s business model is viable and that workers are not exploited through the use of charges for services.

Due diligence checks could include:

• asking work candidates and workers if the’ve paid any money to the labour provider – this would tease out any malpractice or provide the workers with a route to make complaint
• ongoing checks of the overseas licence holder’s business model

Records of such checks might be requested by FWA compliance inspectors.

Contact FWA

If you’re not sure if you’re at risk of breaching standard 7.1, contact us by:

• email at licensing@fairworkagency.gov.uk 
• phone on 0345 161 6000

Monday to Friday, 9am to 5pm (except public holidays) 

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