Oldham Councillor Disqualified For Employing Illegal Workers

Thursday, 8 September 2016 07:00

An Oldham Councillor has been disqualified as a director after an investigation found he had allowed his company to employ illegal workers.

Mr Montaz Ali Azad, who ran Eurolinen UK Ltd which traded as an industrial laundry in Greater Manchester has been disqualified from acting as a director for six years for allowing the company to employ three illegal workers. The disqualification followed an investigation by the Insolvency Service, working with the Home Office.

Mr Azad signed a disqualification undertaking, which was accepted by the Secretary of State, which bans him from being a company director and from being involved in the management of a limited company in any way for a period of six years from 7 September 2016.

The disqualification bans him from being a company director and from being involved in the management of a limited company in any way for the duration of the ban.

Eurolinen UK Ltd went into liquidation on 18 September 2014 owing £105,367 to creditors.

The matters of unfitness which resulted in the undertaking were:

Mr Azad failed to ensure that Eurolinen UK Ltd complied with its statutory obligations under immigration laws, resulting in the employment of 3 illegal workers. This breach was discovered following a visit from Home Office Immigration Officers on 27 September 2013 and resulted in a civil penalty of £15,000 being issued by the Home Office which remained unpaid at the date of liquidation.

Mr Azad also failed to ensure that the company correctly operated a Pay As You Earn Scheme, by failing to declare these employees to HMRC and accounting to HMRC for any deductions made from their wages.

Robert Clarke, Group Leader, Insolvent Investigations North, 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."

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