Couple fined €18,400 for failing to pay workers’ wages

A couple who ran two companies have been fined a total of €18,400 after being found guilty of breaching employment laws and failing to pay their staff.

Nadia and Anton Theuma, who served as directors of 5 Senses Ltd and Paragon Limited, were found guilty in nine separate cases involving unpaid wages, bonuses, allowances and leave pay for nine employees.

In its judgment, the court ordered that all nine case files be forwarded to the European Public Prosecutor’s Office (EPPO), the Police Commissioner and the Commissioner for Inland Revenue to investigate possible offences linked to EU-funded projects and unpaid social security contributions.

A representative of the Department for Industrial and Employment Relations (DIER) testified that several employees had lodged complaints over unpaid salaries and entitlements. The Theumas had initially promised to settle the arrears once a property they owned was sold, but failed to do so.

When the couple were invited to an out-of-court settlement meeting, they did not attend, prompting the department to refer the matter to the police. Although the accused later claimed that payments were made, DIER said it never received any proof.

Former senior manager Maria Grazia Borg testified that both companies began to struggle in 2022, with salaries delayed for months while suppliers were paid instead. She said the workforce shrank dramatically from 70 to just 11 employees during the pandemic, as management increasingly relied on costly freelancers from platforms like Upwork and Freelancer.

By mid-2022, the companies were unable to meet their salary obligations, leaving staff unpaid for several months. “The directors knew exactly what was happening,” Borg testified, adding that she and a colleague repeatedly warned the Theumas about the growing financial strain.

The court also heard evidence that the companies used employee payslips in applications for EU-funded projects. Finance officer Connie Frankline Azzopardi testified that leave was omitted from some payslips to secure funds for wage payments, a practice the court described as “a not so discreet tactic.”

It noted that the accused attempted to partially settle dues on the eve of court sittings to mitigate the consequences, but their actions did not absolve them of criminal responsibility.

The Theumas were each fined between €600 and €1,500 per employee, totalling €18,400 in penalties. The court also confirmed that the workers were entitled to the outstanding amounts and ordered that the relevant authorities investigate the possible misuse of EU funds and failure to pay tax and social security dues.