Director disqualified after employing three illegal workers

A trader has been disqualified from being a company director for six years after he employed illegal workers.

An investigation by the Insolvency Service found that he had employed three people at his supermarket even though they were not entitled to work in the UK.

The supermarket went into liquidation on 12 November 2014, owing £112,243 to creditors including a £12,500 fine imposed by Home Office Immigration Enforcement for employing illegal workers.

The disqualification prevents the trader from acting as a company director or from managing or in any way controlling a limited company until 2021

Sue MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at 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 undercuts 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 getting jobs in the UK. To comply with the law, a company must be able to prove that documents have been checked prior to recruitment and show that a person is entitled to work here.

Without specific permission of a court, a person with a disqualification order cannot:
• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property.

Please contact John Carter if you would like more information about the issues raised in this article or any aspect of employment law and compliance.