Teresa Aguda, owner of Rascals Day Nursery in Walthamstow, London, was fined £2,500 and ordered to pay £500 in costs in a case brought by HM Revenue and Customs (HMRC). The case was heard at Waltham Forest Magistrates Court last Tuesday.
Mrs Aguda pleaded guilty to the charge of obstruction for preventing HMRC compliance officers from accessing nursery staff records to try to establish whether she was paying workers the NMW.
Judge Gott said Mrs Aguda 'had demonstrated a clear and deliberate intent to obstruct officers and this was a scandalous breach of the national minimum wage legislation'.
A spokesperson for HMRC said, 'We don't know if Mrs Aguda has been paying the NMW or not. We will try to gain access to the nursery to look at the records.'
She said the majority of cases of non-compliance were due to misunderstandings over rates, for example where trainees or apprentices had changed job roles or there was confusion about overtime, but a small number of employers could face criminal prosecution.
Earlier this year the then trade and industry secretary, Alistair Darling, announced a crackdown on employers who flouted the NMW and said they would be fined.
There are six potential criminal offences under section 31 of the NMW Act, where:
- an employer refuses or wilfully neglects to pay NMW
- a person fails to keep or preserve records
- a person knowingly causes or allows false entry in records
- a person produces or furnishes false records or information
- a person delays or obstructs a compliance officer
- a person refuses or neglects to answer any questions or produce documents for a compliance officer.
Minimum wage rates are to go up from 1 October.
The NMW helpline is on 0845 6000 678.
the rate for workers aged 22 and over rises from £5.35 to £5.52 an hour and the development rate for 18-21-year-olds goes up from £4.45 to £4.60 an hour. The rate for 16 to 17-year-olds goes up from £3.30 to £3.40 an hour.
The HMRC has been scrutinising the early years and childcare sector.
