Migrant Workers

Working with HMRC, the Gangmaster Licensing Authority (GLA) has identified a number of overseas labour providers who are trading without a recognised UK branch or agency. If you are an employer who uses overseas agents to recruit labour, you need to be aware that where payment to the worker is made by an overseas intermediary, then responsibility for PAYE falls to you as UK employer and is not, therefore, the responsibility of the intermediary.

For example, a UK based employer uses an overseas agent to recruit workers. The employer pays a fee to the overseas agent who pays the workers their wages but not PAYE. Even though the UK employer is not responsible for paying the workers’ wages, in this case he remains responsible for PAYE. Failure to operate PAYE in respect of the workers involved could result in the UK employer being taken to court, a heavy fine or even prison.

If you employ migrant workers the Business Link website contains lots of information to help you comply with the law. Including a new on-line toolkit and a Step by Step guide to employing migrant workers.