An Indian restaurant in East London has had its license suspended after a Home Office investigation revealed that staff members were being paid below the legal minimum wage. The Newham Council revoked the Udaya Restaurant's license for three months after the Home Office visited the restaurant on Katherine Road in June 2024.

During the visit, officials discovered that several employees were receiving wages far below the minimum wage, with some also being provided with food and accommodation as part of their compensation. Furthermore, four of the seven employees encountered by the Home Office were found to be working illegally.

Udaya, which has been operating in East Ham for over 25 years, had previously been fined £180,000 in June of last year after authorities discovered four individuals working there without the right to do so.

The licensing sub-committee of Newham Council convened on August 11th to review Udaya's premises license. According to the minutes, the license holder admitted that he hadn't been able to dedicate enough time to the business due to a demanding schedule, which resulted in inadequate staff training. However, he assured the committee that he was aware of the necessary changes and was prepared to personally devote more time to the restaurant.

Local MP Stephen Timms also showed his support for the owner, Parjeesh Kumar, by writing to the panel. Timms stated that Kumar had taken full responsibility for the violations and had been cooperative with the authorities. Timms argued that this was a first offense and he believed it was not intentional.

Kumar acknowledged that revoking Udaya's license would likely result in permanent closure, especially given the significant financial strain caused by the £180,000 fine. He emphasized that Udaya Kerala Restaurant is more than just a business; it is a valued part of the borough's cultural and economic landscape.

This incident highlights the ongoing issue of businesses failing to pay the national minimum wage. Recent data revealed that several businesses in East London have been named for not paying the minimum wage to their staff. HMRC's annual list of employers who failed to comply with national minimum wage legislation revealed that nearly 60,000 workers across the UK were left out of pocket, with £7.4 million now being repaid.

The Minister for Employment Rights, Justin Madders, has stated that there is no excuse for employers to undercut their workers. He affirmed the government's commitment to naming and holding accountable companies that break the law and fail to pay their employees what they are owed.