Legal News Update


28 June 2010
Fine ‘opens optician's eyes' to minimum wage penalties

A northern optician has been fined more than £3,000 after ignoring government regulations and refusing to pay workers the National Minimum Wage.

Benjiman Gains, who runs and operates two BG Optical stores in Liverpool, has become the first employer in the North West to be successfully prosecuted for National Minimum Wage offences.

The 28-year-old, who paid members of staff up to 40% less than the minimum standard, attempted to hide the fact he was underpaying by falsifying employee information and neglecting HM Revenue and Customs (HMRC) requests for appropriate documents.

According to the HMRC, Mr Gains provided workers with annual contracts, based on salaries that appeared to be close to minimum wage rate. On top of unfair standards on paid meal breaks, the HMRC discovered Mr Gains had been altering rates of pay by back-dating contracts to show altered hours of working.

The optician pleaded guilty to six National Minimum Wage offences and was ordered to pay £3,696 in fines, making him the seventh employer to be charged since the introduction of the minimum wage.

Speaking after the ruling, Mike O'Grady, of HMRC Criminal Investigations unit, said: "This sentencing sends a clear message to employers, large or small, that HMRC will actively pursue those whom we suspect of flouting National Minimum Wage law.

"If employers prevent HMRC officers from checking staff records, attempt to alter or falsify pay records and related documents and refuse to comply with the law they could receive a fine and a criminal record."

Introduced in 1999, the minimum wage aims to ensure that all employees around the country are paid enough to keep them above the poverty line. Currently set at £5.80, from October 1 st National Minimum Wage will increase to £5.93 for all workers aged 22 and over.


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