Sheffield car wash Director banned for breaching immigration legislation
Some of the more well reported reasons for Director Disqualification include: failing to file accounts and returns with Companies House, failing to pay taxes, failing to keep proper accounting records, trading whilst insolvent, Bounce Back Loan fraud and the misuse of funds. But there are others, and one that we are seeing quite a lot of recently is employing illegal workers. In this recent case study from the Insolvency Service (IS), we look at how a Sheffield based car wash Director received an 8-year period of Director Disqualification for employing illegal workers.
The details of this Director Disqualification case
Storm Hand Car Wash was incorporated in July 2020, with Lukas Horvath as its sole Director. He hired five illegal workers at this business which was visited by Immigration Enforcement in 2022. They found five men in their 20s with no right to work in the UK. Three of the workers were from Eritrea, with the other two from Iran and Iraq.
As a result, the Director was disqualified at a hearing at the High Court in Manchester in October, with his ban starting on 11th November 2024.
Storm Hand Car Wash was also fined £75,000 for the immigration breaches, which remains unpaid, but has been passed to specialist debt recovery contractors for enforcement action.
The Director Disqualification Order prevents Lukas Horvath from becoming involved in the promotion, formation, or management of a company, without the Permission of the Court until 2032.
Comments from the Insolvency Service and the Home Office
Dave Magrath, Director of Investigation and Enforcement Services at the IS, said:
“Company Directors must follow all the rules and regulations that are required of them. Lukas Horvath failed to do this by employing five people who did not have the right to work at his car wash.
Improving Director conduct is a key priority for the IS and we will continue to work with our partners at the Home Office to clamp down on those who do not meet the standards we expect.”
Theresa Gregory, the Home Office’s Immigration Compliance Enforcement lead for North East, Yorkshire & Humber, said:
“Illegal working undercuts honest employers, places vulnerable individuals at risk of exploitation and disadvantages legitimate job seekers.
It also impacts public finances as taxes are not paid by these businesses and workers, which is why tracking down unscrupulous employers is so important.
We are pleased to secure this Director ban following an effective and close working relationship between the Home Office and the Insolvency Service.”
Not all such cases result in disqualification of the Director. Every case turns on its own facts. The Team here at NDP has successfully represented Directors facing such Unfit Conduct allegations.
Contact us if threatened with Director Disqualification
We have a number of illegal employment cases on the go at the moment – it is certainly a very active area right now.
In our role as Director Disqualification Solicitors, we regularly represent Directors who are being investigated by the IS for Director Disqualification, and we have a strong track record in persuading the IS to drop their investigations, where there is enough evidence to support the Directors. Take a look at some of our testimonials.
Contact us for an initial free of charge discussion if you are being investigated by the IS
