A hard-hitting new review into the employer pays principle has sparked concern across horticulture, with the NFU warning that forcing growers to shoulder all recruitment costs for seasonal workers could push many to the brink of collapse.
The review, commissioned by Defra and the industry-led Seasonal Worker Taskforce, highlighted the significant financial pressures such changes would place on growers—many of whom are already operating with profit margins as low as 2%.
The findings warn that additional costs which cannot be passed up the supply chain will severely impact growers' financial viability.
While it may be possible to recover some of the added expense, many businesses would still be left facing substantial losses. In the worst cases, this could lead to closures, job cuts, and a decline in domestic production.
The employer pays principle requires employers to cover all recruitment-related costs in full. Recruitment fees are a widespread issue worldwide, especially for low-wage migrant workers who are often expected to pay agencies and brokers fees to secure jobs overseas.
Following the review, Martin Emmett, chair of the NFU Horticulture and Potatoes Board, said: “Seasonal workers play a vital role in getting the nation’s favourite fresh fruit, vegetables and flowers onto supermarket shelves and without them the sector simply wouldn’t function.”
He added that the review has “confirmed what many growers have feared” — that making employers bear all additional recruitment costs could have serious repercussions for UK horticulture.
“Most businesses already run on very tight margins, so this would push some over the edge,” he said. “That is at odds with the government’s Food Strategy ambition to provide more easily accessible healthy food for the nation.”
Mr Emmett also pointed out that the review failed to explore “the prevalence or scale of any possible worker debt,” calling it “an important issue that requires further thought to determine the best way to address it while also safeguarding the future of UK horticulture and food security.”
He stressed that employers “care deeply about worker welfare” and are already engaging across the supply chain to enhance conditions for seasonal staff.
“This review is part of that ongoing effort, and we will work with the taskforce to carefully consider the findings of the review and to agree next steps without putting the future of British farming and our food supply at risk."
The Seasonal Worker Taskforce is made up of a range of stakeholders in the industry including: seasonal worker scheme operators, retailers, growers, trade associations and distributors.
The taskforce works collaboratively to help safeguard and ensure access to workers’ rights in the UK.
