A children’s nursery owner has become the first person to be criminally prosecuted for breaking minimum wage laws, the government announced yesterday.

Teresa Aguda, proprietor of Rascals Day Nursery in Walthamstow, was fined £2,500 and £500 costs after being prosecuted by HM Revenue and Customs (HMRC) for breaking the National Minimun Wage Act of 1998.

Aguda pleaded guilty to the charge of obstruction, after failing to allow HMRC complicance officers access to staff records during their investigation.

According to the judge, Aguda ‘demonstrated a clear and deliberate intent to obstruct officers and this was a scandalous breach of the National Minimum Wage legislation.’

Andy Millican, criminal investigation team leader for HMRC added: “This prosecution sends a clear message to employers that HMRC and RCPO will actively pursue those we suspect of flouting National Minimum Wage law.

“If employers obstruct us and refuse to comply with the law they could receive a fine and a criminal record.”

The National Minimum Wage for workers aged 22 and over is currently £5.35 an hour an hour. This will increase to £5.52 on 1 October 2007.

Each criminal offence carries a maximum fine of £5,000 and a criminal record.

© Crimson Business Ltd. 2007