Understanding Charge Rate Guidance for Labour Providers and Users (April 2024)

Are you a labour provider or user in the UK? If so, understanding the minimum charge rates between labour providers and users is crucial. The GLAA Brief 83 provides essential guidance effective from 1st April 2024. Let’s dive into the details:

1. Purpose of the Brief:
   • The GLAA Brief 83 outlines indicative minimum charge rates that should apply between a labour provider and a labour user.
   • These rates cover statutory requirements and include a basic overhead.
   • The figures are compiled by the Association of Labour Providers (ALP) for the Gangmasters and Labour Abuse Authority (GLAA).
2. Components of the Charge Rates:
   • The rates consider:
     • National minimum/living wages
     • Increased labour sourcing and retention costs
     • Scotland, Wales, and Northern Ireland agricultural minimum wage increases
   • They do not include any margin for a labour provider’s profit.
3. Key Factors in the Rates:
   • Statutory Charge Factors:
     • Minimum wage
     • Employer’s National Insurance (NI) contributions
     • Annual holiday pay
     • Apprenticeship Levy
     • Pensions auto-enrolment cost
   • Labour Provider Overhead and Service Charge Costs:
     • These costs vary based on efficiency, contract specifics, and site conditions.
     • Overhead costs are indicative and may differ for each contract.
4. Compliance and Non-Compliance:
   • Charging significantly less than the published rates may raise concerns of non-compliance.
   • The GLAA monitors charges below the published rates to ensure compliance.
5. Learn More:
   • For detailed rates and further information, refer to the full GLAA Brief 83 – Charge Rate Guidance here.