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Director banned for seven years for employing illegal workers

Posted: 6th April 2016   In: Corporate Commercial, Business Employment

A businesswoman has been banned from acting as company director for seven years for allowing her restaurant to employ illegal workers.

An investigation by the Insolvency Service in 2013 found that the woman was a director of the restaurant while it was employing three people who were not eligible to work in the UK.

The restaurant went into liquidation on 17 September 2013, owing £184,187 to creditors, including £15,000 for a fine imposed by Home Office Immigration and Enforcement for employing the illegal workers.

The County Court then banned the woman from acting as a company director or from managing or in any way controlling a limited company until 2023.

Sue MacLeod, of the Insolvency Service, said: “Illegal workers are not protected under employment law, and as well as cheating legitimate job seekers out of employment opportunities, these employers defraud the taxpayer and undercut honest competitors. This should serve as a warning to other directors who may feel tempted to break the law.

“The Immigration, Asylum and Nationality Act 2006 makes employers responsible for preventing illegal workers in the UK. To comply with the law, a company must check and be able to prove documents have been checked prior to recruitment showing a person is entitled to work.”

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

Please contact Sarah Liddiard if you would like more information about the issues raised in this article or any aspect of company and employment law.

Posted by: Sarah Liddiard
Corporate Commercial
Luton Office