Director disqualified for six years for employing illegal workers

16 Sep 2016

Mr Montaz Ali Azad, former director of Eurolinen UK Ltd (“Eurolinen”), an industrial laundry in Greater Manchester, has been disqualified from acting as a director for six years after the company was found to have employed three illegal workers.

Eurolinen went into liquidation on 18 September 2014 owing £105,367 to creditors. The disqualification followed an investigation by the Insolvency Service, working with the Home Office.

Mr Azad was found to have failed to ensure Eurolinen complied with its statutory obligations to complete relevant immigration checks and retain copy documents, resulting in the employment of three illegal workers. Following a visit from immigration officers on 27 September 2013 Eurolinen was issued with a penalty notice for the sum of £15,000 which remained unpaid at the date of liquidation.

As the sole director of Eurolinen from 1 March 2005 Mr Azad was responsible for ensuring the company complied with the provisions of the Immigration, Asylum and Nationality Act 2006.

The maximum civil penalty for each employed individual found not to have the right to work is now £20,000 and, since 12 July 2016, an employer who "has reasonable cause to believe" that an employee is disqualified from the employment by reason of their immigration status can be subject to imprisonment for up to five years.

The case emphasises the top-level accountability of company directors. A company’s management team needs to ensure that responsibility is assigned to appropriate individuals who can effect compliance with the law on prevention of illegal working and that robust procedures are in place to carry out right to work checks and identify and report any apparent issues.

For more information on how to get processes in place to prevent such a situation arising in your organisation, please contact:

Further reading

Remote working and home security

Blog, News & PR
With a large proportion of the workforce now working from home, security arrangements for home workers need to be addressed - Robert Ganpatsingh explains
Read more Read

Tenants take note: dilapidations damages to be subject to VAT

Blog, Legal Updates
Property expert Cheraine Williams explains why dilapidations could be about to get more expensive
Read more Read

Covid business interruption insurance payments due to small and medium companies

Blog, Legal Updates
Partner Jonathan Compton looks at the Supreme Court’s decision on business interruption insurance
Read more Read

DMH Stallard’s corporate team shortlisted for four awards

Blog, News & PR
Current Corporate Law Firm of the Year hoping to hold on to the title in 2021
Read more Read
  • Brighton Office

    1 Jubilee Street


    East Sussex

    BN1 1GE

  • Gatwick Office

    Griffin House

    135 High Street


    West Sussex

    RH10 1DQ

  • Guildford Office

    Wonersh House

    The Guildway

    Old Portsmouth Road



    GU3 1LR

  • Horsham Office

    Ridgeland House

    15 Carfax


    West Sussex

    RH12 1DY

  • London Office

    6 New Street Square

    New Fetter Lane


    EC4A 3BF

  • Get in touch