HM REVENUE AND
CUSTOMS News Release (NAT 32/08) issued by The Government News
Network on 3 July 2008
The owners of a
Sheffield butcher's shop have been ordered to pay over
£11,000 to two former employees after they failed to pay the
National Minimum Wage. They are the first employers in Yorkshire
to face criminal prosecution for National Minimum Wage offences
including being the first employers in the country to face
criminal prosecution for deliberately not paying the National
Minimum Wage.
David Jackson and his daughter Pauline Smout, proprietors of
Jackson's Butchers, Chaucer Road, Sheffield, pleaded guilty
to neglecting to pay two former employees the National Minimum
Wage. Jackson and Smout had also failed to keep adequate pay
records, and had made false entries in the records they had kept.
Jackson produced these false records in an attempt to show HM
Revenue & Customs (HMRC) compliance officers that they had
been paying the correct amounts.
Jackson was fined £700 plus costs, and ordered to pay £9,065.85
in compensation to the two former employees. Smout was fined £100
plus costs, and ordered to pay £2,009.74 in compensation. The
compensation must be paid by 1 October 2008.
In sentencing Jackson and Smout, Deputy District Judge Hatton
said:
"The appalling way you treated these employees
meant that both [employees] lost out. The simple fact was that
they are entitled to this money, and they will get it"
Jackson and Smout were prosecuted by the Revenue and Customs
Prosecutions Office (RCPO) for 'refusing or neglecting to pay
National Minimum Wage, failing to keep adequate records' and
'making false entries in pay records'. David Jackson was
additionally prosecuted for 'producing or furnishing false
records or information'.
Andy Millican, Criminal Investigation Team Leader for HM Revenue
& Customs said:
"This sends a message to employers,
large or small, that HMRC and RCPO will actively pursue those we
suspect of flouting National Minimum Wage law. If employers fail
to pay the National Minimum Wage and refuse to comply with the law
they could receive a fine and a criminal record."
Financial Secretary to the Treasury, Jane Kennedy
said:
"HMRC is working hard to ensure that workers
receive their legal entitlement to at least the minimum wage. The
majority of UK employers are honest and responsible, but those who
refuse to assist HMRC's officers or fail to comply with the
law could face criminal prosecution. HMRC has a good record of
actively pursuing those who they suspect of breaking the National
Minimum Wage law."
Employment Relations Minister, Pat McFadden
said:
"Everyone has a right to the National Minimum Wage
and this case reflects the Government's determination to
crack down on rogue employers who underpay their staff. That is
also why we are toughening up our powers to punish those who
don't pay the minimum wage, including introducing potentially
unlimited fines and giving inspectors greater powers to
investigate wrong-doing."
Notes to editors
1. The case was heard at Sheffield Magistrates' Court on 2
July 2008.
2. Charges were as follows:
Jackson and Smout:
a) 2 charges of non payment of National Minimum
Wage[s31(1)].
b) 2 charges of failing to keep adequate records
[s31(2)].
c) 1 charge of making false entries in pay records [s31(3)].
Jackson: a) furnishing false information [s31(4)].
3. The defendants' dates of birth and addresses
are:
David Jackson, Pontefract
DOB 08/04/1948
Pauline
Smout, Sheffield
DOB 20/02/1967
4. The six potential criminal offences under section 31 of the
NMW Act are:
- Employer refuses or wilfully neglects to pay NMW
- Person
fails to keep or preserve records
- Person knowingly causes or
allows false entry in records
- Person produces or furnishes
false records or information
- Person delays or obstructs
compliance officer
- Person refuses or neglects to answer any
questions or produce documents for compliance officer
5. Each criminal offence carries a maximum £5,000 fine and a
criminal record.
6. The National Minimum Wage Act 1998 has now been in force for
nearly ten years. HM Revenue & Customs has operational
responsibility for enforcing the minimum wage and has operated a
helpline and network of compliance teams since 1 April 1999 to
fulfill that role. The Department for Business, Enterprise and
Regulatory Reform (BERR) is responsible for National Minimum Wage policy.
7. The National Minimum Wage helpline number is 0845 6000 678. As
well as receiving complaints about non-payment of the minimum
wage, the helpline provides advice and information.
8. This is the fourth successful National Minimum Wage criminal
prosecution. The first case was against Rascals Day Nursery Ltd,
Walthamstow, heard at Waltham Forest Magistrates' Court on 28
August 2007. The second against Torbay Council was heard at
Torquay Magistrates' Court on 1 October 2007. The third
against Robert Singh, proprietor of Pound Mania, was heard at
Nottingham Magistrates' Court on 30 April 2008.
9. From 1 October 2007 the main minimum wage rate for workers
aged 22 and over was raised to £5.52 an hour. The development rate
for 18-21 year olds is £4.60 an hour. The rate for 16-17 year olds
is £3.40 an hour. Rates will be raised again on 1 October 2008.
10. This case was successfully prosecuted by the Revenue &
Customs Prosecutions Office (RCPO). RCPO is an independent
prosecuting authority that reports to the Attorney General, and is
responsible for the prosecution of all HMRC cases in England and
Wales. RCPO was created by Royal Assent on 07 April 2005.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk