The owner of a children's nursery has been fined £2,500 in the first prosecution of an employer for paying below the minimum wage.
Teresa Aguda, the owner of Rascals Day Nursery in East London, admitted obstructing HM Revenue & Customs officials who were attempting to establish whether workers at the nursery were being paid the national minimum wage.
The Judge said that Ms Aguda had "demonstrated a clear and deliberate intent to obstruct officers and this was a scandalous breach of the legislation."
TUC general secretary general Brendan Barber commented: "The full force of the law should be used against employers who deprive their staff of their legal right to the minimum wage."
He added that he was pleased that Revenue and Customs was taking a hard line on the issue.
The minimum wage in the UK is due to rise from £5.35 to £5.52 an hour from October of this year.