Seven-year ban for restaurant director who employed illegal workers

Wok fire (photo: Tony Webster)Photo: Tony Webster, Creative Commons image

A director of eight restaurants has been disqualified for seven years for employing two illegal workers and failing to comply with tax duties.

An Insolvency Service investigation found that Yingji Li, the director of Mandarin Kitchen Limited, had caused the business to employ two illegal workers and failed to submit returns or payments to HMRC for VAT, PAYE and NIC. Consequently, at least £191,748 was owed to HMRC at the date of liquidation.

Mr Li, the director of Mandarin Kitchen Limited, gave an undertaking to the Secretary of State for Business, Energy & Industrial Strategy that prevents him from becoming directly or indirectly involved in the promotion, formation or management of a company for seven years.

What are the penalties for employing illegal migrant workers?

An employer found to have employed illegal workers after failing to carry out the correct right-to-work checks can be fined up to £20,000 for each illegal worker. Those found guilty of employing someone they knew or had ‘reasonable cause to believe’ didn’t have the right to work in the UK could face an unlimited fine and up to five years in prison.

Expert legal advice on employing foreign and migrant workers

To ensure that your business’ procedures for employing non-UK or non-EEA nationals are compliant with the law, please email Paul Maynard (Employment Law Services Partner) or call him on 01323 435 900. To learn about Paul’s skills and experience, please view his website profile.

Expert legal advice on directors’ duties

For expert advice and guidance on directors’ duties please email Jeremy Laws (Commercial Litigation Services Partner) or call him on 01323 435 900. To learn about Jeremy’s skills and experience, please view his website profile.

Posted: 17 July 2017

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