National Minimum Wage - Employer fined under first criminal prosecution

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On 28 August 2007, a children's nursery owner was fined £2500, with £500 costs, in the first criminal prosecution case under National Minimum Wage legislation. The case was successfully prosecuted by the Revenue & Customs Prosecutions Office.

Mrs Teresa Aguda, the proprietor of Rascals Day Nursery Ltd in Walthamstow, entered a guilty plea to the charge of obstruction, an offence under the National Minimum Wage Act. Mrs Aguda prevented HMRC compliance officers from accessing staff records as they attempted to establish whether nursery workers received the National Minimum Wage.

The six potential criminal offences under section 31 of the NMW Act are:

• refusing or wilfully neglecting to pay NMW
• failing to keep or preserve records
• knowingly causing or allowing false entry in records
• producing or furnishing false records or information
• delaying or obstructing compliance officer
• refusing or neglecting to answer any questions or produce documents for a compliance officer.

Each criminal offence carries a maximum £5,000 fine and a criminal record.

...UK Payroll News - Latest

Further information:
National Minimum Wage - First criminal prosecution

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