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News : Firm Fined for Not Paying Staff the Minimum Wage
Oldham, UK, Aug 11, 2016 -- Two Oldham bosses and the company they ran have been fined a total of £5,000 for repeatedly obstructing HM Revenue and Customs (HMRC) officers as they investigated the non-payment of the National Minimum Wage (NMW).
HMRC discovered that Mashud Miah (34) and Abuhashan Zaman (35) owners of L UK / Euro (Brighton) Limited, trading as 3D Telecom, had failed to pay the NMW - withholding more than £6,000 from nine call centre employees.
When investigators interviewed the staff and examined their payslips, they discovered that they were being paid at the apprentice rate, despite not being given the training or opportunity to gain a qualification, as required by NMW legislation.
Miah, of Penn Street, Oldham, pleaded guilty to the wilful neglect to pay National Minimum Wage and the wilful obstruction of an officer of Revenue and Customs. He was fined £2,000 and ordered to pay costs of £620 on August 4.
Zaman, 35, of Malton Street, Oldham, pleaded guilty to the wilful neglect to pay National Minimum Wage. Zaman was fined £1,000 and ordered to pay costs of £620.
In addition the business, L UK / Euro (Brighton) Limited, trading as 3D Telecom, from premises on Union Street, Oldham, pleaded guilty to the wilful neglect to pay National Minimum Wage and the wilful obstruction of an officer of HMRC, contrary to section 31(5) National Minimum Wage Act 1998. For these offences 3D Telecom was fined £2,000 and ordered to pay costs of £620.
The court also issued a compensation order in respect of nine individual employees, totalling £6,350.06, with the liability split between the company and its two bosses.
3D Telecom is the first company in this trade sector to be prosecuted for NMW offences.
Jennie Granger, director general enforcement and compliance, HMRC, said: "We are relentless in pursuing abusers of the National Minimum Wage.
"In the last year we have recovered pay arrears in excess of £10 million for more than 58,000 workers.
"These men took advantage of young workers on non-existent apprentice schemes.
"It is unacceptable for employers to cheat staff and HMRC will ensure rules are being followed, taking action where they are not."
Posted by Veronica Silva Cusi, news correspondent
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About H.M. Revenue & Customs (HMRC):
HM Revenue & Customs (HMRC) was formed on the 18 April 2005, following the merger of Inland Revenue and HM Customs and Excise Departments. HMRC ensures the correct tax is paid at the right time, whether this relates to payment of taxes received by the department or entitlement to benefits paid.
Published: Friday, August 12, 2016