A business in St Albans has had its licence revoked by the Gangmasters Licensing Authority (GLA) after an inspection found missing files, inadequate contracts and health and safety issues.

Extrastaff Limited had appealed against the decision and a pragmatic approach brokered by legal representatives of both parties allowed them to continue trading until a new licence application was considered.

But Extrastaff then reneged on this agreement and, despite strong legal representations, failed in its bid to get the licence reinstated. The appeal was dismissed and the licence was revoked last month.

Extrastaff Limited, who in 2005 won the Recruiter award for Best Regional Recruitment firm for London and the South East, also have offices in Ilford, Hanger Lane, Dunstable, Enfield, Dartford, Northampton, Watford, Harlow and Basildon.

If any of these offices now supply labour or a labour service into the GLA-regulated sectors, they will be prosecuted for operating as an unlicensed gangmaster.

When the GLA inspected in May 2008, they found that worker files were missing details including the workers' names, there were inadequate worker contracts, incomplete training records and an inadequate contract between the labour user and provider which did not stipulate who was responsible for worker health and safety.

Paul Whitehouse, chairman of the GLA, said: “This is a sorry case that wasted a lot of people’s time and inevitably a lot of money in legal costs. I hope Extrastaff learn lessons from this and that the non-compliances are not mirrored in sectors they supply to that are outside GLA regulation.”

The GLA currently licences 1,230 gangmasters and has uncovered worker exploitation and illegal activity that led to the stripping of 93 licences.