Director Disqualification and Illegal Workers

6 Year Director Disqualification for Employing an Illegal Worker. 

There are many responsibilities and duties of being a director, which if broken or transgressed can lead to director disqualification. This case study based upon an Insolvency Service announcement looks at them accepting a Director Disqualification Undertaking for a period of 6 years from Mr Akbar Bari, a director of Indian Palace Express Ltd (IPE) that went into liquidation, for employing an illegal worker.

The Details of This Director Disqualification Case

IPE was an Indian take away, based in Rochdale, Lancashire, which was placed in liquidation on 18 May 2015 owing its creditors over £25,000.

As specialists in Director Disqualification, our experience would usually tell us that a relatively low deficiency such as this would not normally merit much attention from the Insolvency Service. However, in this case it appears that the facts that they took into account in threatening to bring Director Disqualification Proceedings included the employment of an illegal worker.

The employment of the illegal worker, a breach of immigration law,  was discovered when Home Office Immigration and Enforcement Officers (‘HOIE’) visited the Company. The Company was fined with a civil penalty of £15,000.00 by the HOIE for this offence. That fine was unsuccessfully appealed and the fine was not paid. The financial claim in the liquidation of the Company lodged by the Department for the Home Office was the largest creditor claim out of the stated deficiency. Click here to see the Company’s details on the Companies House register.

Mark Bruce the Chief Investigator for Insolvent Investigations South at the Insolvency Service said:

“This director sought an unfair advantage over their competitors by employing an individual who did not have the right to work in the UK.

The Insolvency Service rigorously investigates directors who breach employment and immigration legislation and this ban should act as a warning to other employers who are flouting the law. Directors who also seek to obtain commercial advantage over their competitors show a total disregard for the business community generally.”

Our Comments on this Director Disqualification Case

Upon examination of the Company’s Statement of Affairs as lodged at Companies House it is apparent that the Company could not afford to pay the fine for employing the illegal worker and the director chose to place the Company into liquidation instead.

This case demonstrates the consequences for a company that employs illegal workers, one of which could be the instigation of Director Disqualification Proceedings. It is also part of a trend whereby we are seeing that Director Disqualification Proceedings are being threatened and commenced for an ever wider type of what the Secretary of State for Business considers to be ‘unfit conduct’ by directors.

Contact Us if You Are Threatened with Director Disqualification

NDP are well placed to advise the director through our experienced team of director disqualification solicitors. No hole is too deep for us to be able to make a difference, but the earlier you contact us, the more we can do to help. Click here to see some of our recent director disqualification testimonials.

Why not contact us, or call us today on 0121 200 7040, for a no pressure and no commitment chat about your case and the options that you have available to you.  In our experience, there are always options, that could result in a reduction of the likely director disqualification period, or even the dropping of the case by the Insolvency Service.

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