Press release

Hiring illegal workers sees Lincolnshire restaurant boss banned for six years

A restaurant boss who flouted UK immigration laws by employing an illegal worker has been disqualified as a director for six years following collaboration between the Insolvency Service and Home Office Immigration Enforcement.

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Grantham based Yuk Kwai Chan (aka Eddie Chan), 57, employed an illegal immigrant at his restaurant in Stamford, Lincolnshire. The restaurant was visited by the Home Office Immigration Enforcement in 2014 when the illegal worker was discovered.

Chan gave an undertaking to the Insolvency Service not to manage or control a company for six years until 2021. His disqualification will commence on 10 August 2015.

Anthea Simpson, Head of Company Investigations at the Insolvency Service, said:

The Insolvency Service rigorously pursues directors who break employment and immigration laws. Taking on staff illegally means those staff do not enjoy basic employment rights and is a clear breach of a director’s duties.

The public has a right to expect that those who break the law will face the consequences. Running a limited company means you have statutory obligations as well as protections, and this should serve as a warning to other directors tempted to take on illegal staff.

A Home Office spokesperson said:

Illegal working is not victimless. It undercuts honest employers, cheats legitimate job seekers out of employment opportunities and defrauds the taxpayer.

Businesses should be aware that they have a duty to check that their staff have permission to work in the UK.

We are happy to work with employers who play by the rules but those who do not should know that they will not go under our radar.

Notes to editors

Mr Chan & Mr Pang Limited (Company No 05210632) was incorporated on 19 August 2004. Yuk Kwai Chan was the sole director of the company. The restaurant was based at 1 Cheyne Lane, Stamford, Lincolnshire, PE9 2AX. Mr Chan and Mr Pang Limited was placed into liquidation on 30 May 2014, with £4,000 in assets and debts of £39,685.

Company directors may be disqualified under the Company Directors Disqualification Act 1986 if their conduct falls below accepted standards. A disqualification order can be made by a court in proceedings brought under the Act. The members of limited liability partnerships (“LLPs”) are also covered by the Act, in the same way as company directors.

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

In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Further information on director disqualifications and restrictions is available.

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 31 July 2015