Guidance

Inspections and licensing decisions for gangmasters

Published 7 April 2026

The Fair Work Agency (FWA) is responsible for checking that labour providers and labour users in specific sectors comply with the licensing standards for gangmasters. They do this through the gangmasters licensing scheme. 

There’s separate guidance on what gangmasters are and who needs a gangmaster’s licence.  

There are different checks for first-time applicants and existing licence holders.  

Checks for first-time applicants 

After you apply for a gangmaster’s licence, it’s reviewed by the gangmasters licensing team, for accuracy and completeness.  

They’ll verify details about the Principal Authority (PA) – an employee of the business who’s responsible for the day-to-day running of it – directors and partners. 

Licensing officers will also check with other government departments and enforcement agencies, for example for checks on tax, National Insurance and VAT compliance. 

Virtual application inspection 

The licensing team may need to arrange a virtual application inspection (VAI) with you.  

A VAI will be done remotely, using online video software such as Teams. 

We’ll send you details about virtual inspections ahead of time. 

In-person inspection 

After verification checks, a date will be arranged with you for FWA inspectors to visit your business premises if it’s needed.  

They’ll want to inspect some documents and interview the PA. It’s crucial that the PA is there on this date. It could be classed as obstruction if the PA is not available.  

Inspectors will be checking for compliance against the licensing standards, including:  

• if you’re registered with HMRC for PAYE and VAT 

• does the PA have a good knowledge of what is required of them, or is there any reason why they should be deemed not ‘fit and proper’  

• the contracts and payroll you intend to use  

• if unlicensed trading has happened  

Refusing to provide documents without reasonable cause could be classed as obstruction and lead to a licence refusal. 

Checks for licensed labour providers 

If you’re a registered labour provider, you’ll be inspected when:

• you notify FWA you’ve started trading in the regulated sector 

• you change your PA and the licensing team thinks there might be reason to speak to them 

• we get a complaint about your business that needs investigation 

These are called compliance inspections. 

Compliance inspections can be: 

• pre-arranged or unannounced 

• full inspections, to check that business complies with all the licensing standards that are relevant to them 

• thematic, to look only at the areas of concern  

There might be 1 or more inspector, depending on the scope of the inspection. 

They’ll be looking for compliance with licensing standards. 

Examples of non-compliance are: 

• illegal deductions from wages 

• poor accommodation 

• lack of proper health and safety 

As well as talking to the PA, the inspector will want to interview a sample of your workers in the regulated sectors, to check how they were recruited and if they are being treated properly. 

Inspectors might also visit some of your clients’ premises. 

You should also be prepared to provide: 

• worker contracts and terms of engagement 

• wage records, pay slips, and evidence of National Minimum Wage compliance 

• records of tax and National Insurance payments 

• contracts with clients 

Refusing to provide documents without reasonable cause could be classed as obstruction and lead to your licence being revoked. 

The licensing points system 

If issues are found that are not quickly or easily fixed, the inspector will report their findings to the licensing team. 

They’ll review the inspection report, along with any other relevant information, for example details from other government departments. 

All evidence is then checked against the licensing standards. The standards are weighted. Critical breaches are 30 points, while minor failures are 8 or 16 points. 

A total score of 30+ points will usually lead to licence refusal or revocation, while lower scores may result in additional licence conditions (ALCs) or points being attached to a licence. 

This points-based approach is designed to draw out serious, persistent or systematic exploitation rather than isolated, minor non-compliances. 

Read the FWA gangmaster licensing decisions policy for more detailed information. 

Licensing decisions for first-time applicants 

Point score	Decision
0 points	Licence issued
Fewer than 30 points	Licence issued with additional licence conditions - things that need to be corrected within an agreed time
30 points or more	Licence usually refused

Licensing decisions for licence holders 

Point score	Decision
0 points	Licence retained
Fewer than 30 points	Licence retained with additional licence conditions - things that need to be corrected within an agreed time
30 points or more	Licence will be revoked – this can be with or without immediate effect

Licensing decisions – additional licence conditions

Additional licence conditions (ALCs) are specific, legally binding requirements that can be attached to your licence if you have not met certain standards, but the breach does not call for an immediate refusal or revocation.  

You can still trade if your licence has ALCs, but you must fix the identified issues within a set timeframe. 

Licensing decisions – licence revocations 

Licence holders can lose their licence if it’s found that they’ve breached licensing standards.  

Depending on the standards that have been breached, a licence can be revoked: 

• with immediate effect  

• without immediate effect 

Licences revoked with immediate effect 

Inspectors can revoke a licence with immediate effect when it’s reasonable and proportionate to do so. For example, if a critical standard is breached and there’s immediate threat to worker safety.  

If this happens, you cannot continue to supply workers to the regulated sectors. 

Licences revoked without immediate effect 

If your licence is revoked without immediate effect, you can appeal the licensing decision.  

If no appeal is made, you must stop acting as a gangmaster within 21 working days of the original decision date.

If you appeal, you can continue to supply workers to the regulated sectors and will stay on the public register until a final decision is reached. 

If you do not agree with a licensing decision  

There are 2 options if you do not agree with a licensing decision:

1. Internal FWA decision review. This is only available if you think the decision to refuse your licence application was based on factual errors. 
2. External Gangmaster Licensing Appeals Tribunal, managed by HM Courts and Tribunal Service (HMCTS). You have the legal right to appeal if you disagree with a decision to refuse or revoke a licence, or if you object to specific ALCs. 

Internal FWA decision reviews 

Internal decision reviews are also called ‘pre-appeals’. 

This is only an option if your licence application is refused and you think there’s been a factual error in the initial decision. You cannot use this if your licence has been given ALCs or revoked.

You must request an internal decision review within 10 working days from the date on your decision letter. 

External HMCTS appeal 

Use this option to: 

• appeal against a licence refusal or revocation, refusal to transfer your licence, or if your licence has been given ALCs
• ask an appointed independent person – usually a judge – to review the merits of the case to decide if the FWA’s decision was right, wrong in law or disproportionate

There will be a tribunal hearing, at which both sides can present witnesses, documents and full legal arguments. Hearings are usually in person, though they can also be held remotely by video link. 

You must submit your appeal within 20 working days from the date on your decision letter. 

Read more about how to challenge an FWA licensing decision.  

How to complain about an inspection or process 

You can complain if you think an inspector or FWA officer have acted inappropriately or  process has not been followed.

You can complain by: 

• email at complaints@fairworkagency.gov.uk 

• phone on 0345 161 6000

• post at Fair Work Agency, Loxley House, Station Street, Nottingham, NG2 3NG

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

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