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Director Disqualification and Illegal Employment

Director Disqualification for 20 directors of 16 companies for employing illegal workers

Director disqualification for the employment of illegal workers is one of the primary causes for disqualification in the UK today. This article looks at some recent cases, where 20 directors in 16 separate businesses across the United Kingdom have been disqualified recently. Eighteen of these directors have been disqualified for six years each, whilst two have been disqualified for 7 years.

The details of these director disqualifications

The affected businesses include 11 restaurants, four takeaway/fast food establishments and a shop from across the UK. Four of the businesses are  based in London, 3 in Sussex, 3 in the North West, 2 in South Wales and 1 each in Glasgow, County Antrim, Frome and High Wycombe.

The Home Office’s investigation revealed that between them, these businesses employed 41 illegal workers and were fined a combined total of £505,000 by the Home Office – between £10,000 and £15,000 per worker. These fines were not paid. Two of the businesses have now entered into liquidation, whilst two more have been dissolved.

The director disqualifications were for failing to “ensure that the companies complied with statutory obligations under The Immigration, Asylum and Nationality Act 2006”, which requires that directors “ensure that relevant immigration checks are completed and copy documents retained.” These failures resulted in the employment of illegal workers.

What the Insolvency Service said

Cheryl Lambert, Chief Investigator at the Insolvency Service, said:

“Employing illegal workers is not consequence free, either for the employer, the employee or the consumer.

These directors sought an unfair advantage over their law abiding competitors by employing people who were not entitled to work legally in the UK. By definition this is a set of people who are without the protection of the law and knowledge of the authorities, and thereby extremely vulnerable to exploitation in all its forms. It is bad for business and bad for society as a whole.

If a company is found to be employing illegal workers and not carrying out the checks they are required to by law, then the Insolvency Service will continue to liaise with the Home Office to ensure that not only the workers, but the employers will be removed from the market place. This is regardless of the whether the company remains trading or is in Liquidation

These actions are a warning that the Government is pursuing bad employers.”

Comment on these Director Disquaifications

The length of the director disqualifications shows the seriousness with which the Insolvency Service views this particular regulatory breach.

For help and advice on defending yourself if threatened with disqualification, talk to our director disqualification solicitors by calling us on 0121 200 7040, or contact us. The earlier you make contact, the more we can do to help.

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