July 7, 2010
Violation of Minimum Wage Rights
Workers are entitled to minimum wages as specified by the rules and regulations. In
Gains was paying almost 40% less than the minimum wage as salaries to his four employees. The business is located in
Instead of paying the rightful wages, Gains set about altering the employment contracts. He backdated them and altered the documents to include alternative work hours and removed the meal breaks. This caused further damage to the violation and HMRC ordered prosecuted him. He was ordered to pay a fine of £3,696.
Gains who is 28 years old was represented by Mr. Rainford who was trying to do some damage control by defending that Gains paid wages close to the minimum wage and that the difference between the two was not significant. He opined that Gains had not violated the law as his employees were taken good care of. He also emphasised that Gains was under enormous pressure of bank loans.
However, Gains had done enough damage and pleaded guilty. He agreed to pay the stipulated fines ordered by the court. It was interesting though that he had offered to pay the staff back if HMRC dropped the case against him.
The case of Benjamin Gains was a first in the history of Manchester, North West under the National Minimum Wage (NMW) offences.
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