Hiring illegal workers sees director of cooked foods wholesaler disqualified
Satinder Kumar, the director of a Birmingham-based cooked foods wholesaler company, which went into Liquidation on 21 November 2014, has been disqualified from acting as a director for seven years, after an investigation by the Insolvency Service, working with the Home Office.
The Secretary of State for Business, Innovation and Skills accepted Mr Kumar’s 7 year Disqualification Undertaking which, from 22 March 2016, bans him from acting as a company director or from managing, or in any way controlling, a limited company until 2023.
Satinder Kumar of Birmingham, was a director of RK Food No. 1 Limited from 16 May 2013 to 21 November 2014. The company was found, in October 2013, to be employing a worker not eligible to work in the UK, a time when Mr Kumar was director.
The company was subsequently found to be employing another worker, in June 2014, who was not eligible to work in the UK, again at a time when Mr Kumar was director.
The business, a wholesale supplier, and preparer, of cooked foods, went into liquidation on 21 November owing £85,793 to creditors.
Sue MacLeod, Chief Investigator of Insolvent Investigations Midlands & West at the Insolvency Service, said:
Illegal workers are not protected under employment law, and as well as cheating legitimate job seekers out of employment opportunities these employers defraud the taxpayer and undercut honest competitors. Mr Kumar, having been caught employing illegal workers on 2 separate occasions, has been disqualified for 7 years which should serve as a warning to other directors who may feel tempted to break the law.
The Immigration, Asylum and Nationality Act 2006, makes employers responsible for preventing illegal workers in the UK. To comply with the law, a company must check and be able to prove documents have been checked prior to recruitment that show a person is entitled to work.
Notes to editors
RK Food No. 1 Limited (CRO No. 08530979) was incorporated on 16 May 2013 and traded from 9a Queens Head Road, Handsworth, Birmingham, B21 0QG.
Mr Satinder Kumar was the sole director from 16 May 2013 to 21 November 2014 (the date of liquidation).
Mr Satinder Kumar’s date of birth is 27 July 1965 and he resides in Birmingham.
The seven year Disqualification Undertaking was signed on behalf of the Secretary of State for Business, Innovation and Skills on 01 March 2016 to be effective from 22 March 2016.
The matters of unfitness, which Mr Kumar did not dispute in the Disqualification Undertaking, were that he failed to ensure that between 24 October 2013 and 11 June 2014, that RF Food No.1 Limited complied with its obligations as an employer under the Immigration, Asylum and Nationality Act 2006 by causing RK Food No.1 Limited to employ 2 illegal workers, in resulting fines being raised against the company by Home Office Immigration Enforcement on two separate occasions, totalling £5,000 and £15,000 respectively. £19,051 of this total remained due as at the date of liquidation.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
- act as an insolvency practitioner
In addition there are many other restrictions that are placed on disqualified directors by other regulations. Further information on director disqualifications and restrictions is available.
All public enquiries concerning the affairs of the company should be made to: Insolvent Investigations, Midlands & West, 4th Floor, Cannon House, 18 Priory Queensway, Birmingham B4 6FD. Tel: 0121 698 4000. Email: Adminteam.Midlandsfirstname.lastname@example.org.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 21 March 2016
From: The Insolvency Service