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UK’s first criminal conviction for non-payment of National Minimum Wage

7th July 2008

The owners of a Yorkshire butcher's shop have become the first employers in the UK to be convicted of failing to pay staff the national minimum wage (Reported by HMRC July 3rd, 2008).

David Jackson and Pauline Smout became the first employers to face criminal charges for National Minimum Wage offences. The father and daughter pleaded guilty and were ordered to pay court costs plus £11,000 in compensation to two former employees.

Jackson, from Pontefract, and Smout, from Sheffield, were also found guilty of failing to keep adequate pay records and falsifying records in an attempt to show HM Revenue & Customs that they had been paying the correct amounts.

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"

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."

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 wrongdoing."

TUC General Secretary Brendan Barber said: "There must be no hiding place for rogue employers who try to cheat their employees out of the National Minimum Wage."

From 1 October 2007 the minimum wage for workers aged 22 or over was raised to £5.52 an hour.

For 18 to 21 year olds it is £4.60 an hour, and for 16 to 17 year olds it is £3.40 an hour.

Click here to speak to a specialist employment lawyer.


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