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REC urges members to review their business arrangements following the FS Commercial ruling on Pay D

REC urges members to review their business arrangements following the FS Commercial ruling on “Pay Day by Pay Day” schemes

The Gangmasters Licensing Authority (GLA) has made it clear to the REC that the ruling on FS Commercial confirms their position on these schemes as correct and that they will revoke licences where similar "Pay Day by Pay Day" schemes are found to be in use, as the schemes  constitute a breach of Critical Standards 2.1 and potentially 2.2.

Following further discussions with the GLA, REC chief executive Kevin Green said:“We are urging all members to closely review any arrangements they may have with umbrella companies operating travel and subsistence schemes, as well as any schemes they operate themselves, in particular the use of any "Pay Day by Pay Day" models, which now pose a significant commercial and legal risk to agencies.”

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