Sheffield butcher's shop owners prosecuted for non-payment of minimum wage

The owners of a Sheffield butcher's shop have been ordered to pay over £11,000 to two former employees after they failed to pay the National Minimum Wage.

They are the first employers in Yorkshire to face criminal prosecution for National Minimum Wage offences including being the first employers in the country to face criminal prosecution for deliberately not paying the National Minimum Wage.

David Jackson and his daughter Pauline Smout, proprietors of Jackson's Butchers, Chaucer Road, Sheffield, pleaded guilty to neglecting to pay two former employees the National Minimum Wage.

Jackson and Smout had also failed to keep adequate pay records, and had made false entries in the records they had kept. Jackson produced these false records in an attempt to show HM Revenue & Customs (HMRC) compliance officers that they had been paying the correct amounts.

Jackson was fined GBP700 plus costs, and ordered to pay £9,065.85 in compensation to the two former employees. Smout was fined £100 plus costs, and ordered to pay £2,009.74 in compensation. The compensation must be paid by 1 October 2008.

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"

Jackson and Smout were prosecuted by the Revenue and Customs Prosecutions Office (RCPO) for 'refusing or neglecting to pay National Minimum Wage, failing to keep adequate records' and 'making false entries in pay records'. David Jackson was additionally prosecuted for 'producing or furnishing false records or information'.

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.

"If employers fail to pay the National Minimum Wage and refuse to comply with the law they could receive a fine and a criminal record."

Financial Secretary to the Treasury, Jane Kennedy said: "HMRC is working hard to ensure that workers receive their legal entitlement to at least the minimum wage. The majority of UK employers are honest and responsible, but those who refuse to assist HMRC's officers or fail to comply with the law could face criminal prosecution.

"HMRC has a good record of actively pursuing those who they suspect of breaking the 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 wrong-doing."