An Ilford gangmaster’s licence has been revoked after a GLA investigation, supported by Marks & Spencer and Maple Leaf Bakery, uncovered ‘shocking abuse’.

1st Universal Services’ licence was revoked after the company, which supplied workers to the French Croissant company, a subsidiary of Maple Leaf Bakery, withdrew its appeal to contest the decision.

The workers’ documentation suggested they were from Somalia, Sweden, India and Eritrea but checks suggested that some were in fact illegal immigrants.

The inspection found that:

• Waqar Naqvi, director of 1st Universal Services, did not demonstrate any ability or knowledge to run the business and was declared ‘not fit and proper’ to hold a GLA licence
• The contracts manager for 1st Universal Services, who previously worked for S J Services (UK) Ltd and had a licence revoked by the GLA, was found to be running 1st Universal, and was also declared as ‘not a fit and proper’ person to hold a GLA licence
• Worker pay was below the minimum wage. After checking timesheets against wages indications, one worker received only £3.27 per hour, while some workers received £4.19 per hour, £4.95 per hour and £5.23 per hour. Other workers were paid £5 per hour in cash
• Weekly wages were not paid on time
• Evidence of payslips was missing
• Illegal workers were employed and many fabricated documents were found including National Insurance cards with handwritten numbers and letters, alongside unsigned false passports and expired visas
• Workers claimed they had not received a contract and on closer examination contracts and other documents found on file appeared to have forged worker signatures
• Contracts on file did not cover basic legal requirements such as statutory sick pay, notice periods or an undertaking to pay the workers, even if the client did not pay the business

Paul Whitehouse, chairman of the GLA, says: “This is a scandalous case of exploitation, with failures to follow basic employment law that cannot in any sense be considered mistakes. A tough approach is needed to deal with these crooks and we will not stop until we have dealt with all rogue gangmasters.

“If the gangmaster had paid its workers properly they would have made a financial loss as the French Croissant Company was not paying in accordance with the GLA’s minimum advisory rate. The French Croissant Company therefore must share the blame.”