UK Agency Loses Licence Over Worker Debt Scandal

In a significant move that highlights many of the ongoing challenges associated with international labour recruitment, the Gangmasters and Labour Abuse Authority (GLAA) has revoked the license of AG Recruitment, the major supplier of Indonesian farmworkers to British agricultural businesses. The agency, which had brought over 1,450 Indonesian workers to pick fruit for British supermarkets in 2022, was found not to have acted in a “fit and proper manner” following an extended investigation into worker debt and the potential for exploitation.

GLAA investigation revealed that the workers were charging up to £5,000 from unauthorized third party agents in Indonesia. While AG Recruitment’s managing director, Douglas Amesz said he had warned workers that they were not supposed to pay fees, the agency was unable to prevent these costs The cancellation of the licence of the company, was done after a complex assessment of the issues, of the international labour recruitment system.

The second problem is that although the Pinoys agency no longer had its licence, there was no effort to change the negative circumstances of recruitment, said migrant rights specialist Andy Hall. The case highlights the daily violation of international workers ‘rights and the growing urgency of addressing supervision in labour recruitment for farm workers. Another contender by the name AG Recruitment has stated that due to the new rules, it will have to shut down operations in the recruitment industry.