Home Office raids on a famous London café dedicated to Princess Diana have uncovered seven illegal workers.
Some staff at Café Diana, opposite the gates of Kensington Palace, claimed they were being paid in food, according to immigration officers.
The 36-year-old premises has been visited by police and the Home Office four times since 2019.
The walls of the venue are adorned with Diana paraphernalia and owner, Abdul Basit, proudly displays letters he received from the late Princess of Wales as well as tabloid front pages of her visits, including news reports of her taking William and Harry in for a glass of orange juice in 1989.
But the café has now been fined £135,000 for illegally hiring Egyptian and Algerian nationals who had no right to work in the UK and faces being stripped of its licence in a review by Kensington and Chelsea Council next week.
During a raid in December last year, Central London Immigration Compliance and Enforcement (ICE) teams found three illegal workers in the kitchen and dining areas, according Home Office documents.
One Egyptian man, who had entered the UK on a six-month business visa in 2015, told officers that he had been working at the café “for just under five months”. Through an interpreter he said his duties included “making burgers and just helping in the kitchen in return for food”.
However, he had also been caught illegally employed by the business during a raid almost five years previously in February 2020.
Another Egyptian national admitted he had been employed as a waiter for over two years, working five days a week for roughly £500. Home Office checks showed he was an asylum seeker with an “ongoing claim for protection”, submitted in September 2018, and had no right to work in the UK.
An Algerian woman, who said she had just started working in the café, claimed she received food and £9 to £10 an hour as pay.
She told officers the business had not carried out any employment checks but admitted paying €5000 for a fraudulent French ID. Checks revealed her application to remain in Britain through the EU Settlement Scheme had been rejected in December 2022, according to the Home Office report.
The 2020 raid also uncovered three people working in breach of visa and bail restrictions, or after entering Britain illegally. A 2019 immigration enforcement visit saw one illegal worker arrested.
In May this year, a fourth late-night raid did not uncover any illegal working but dozens of tubs of suspected illegal shisha tobacco were seized and officers said they found people smoking the substance in the basement of the famous venue.
“There was a total of seven illegal workers encountered at the premises over four different enforcement visits,” the Home Office said in its report.
“One illegal worker was encountered twice. It is clear to see that the premises licence holder along with management has failed to conduct mandatory employment checks in line with legal obligations to prevent illegal working."
It added: “During interviews conducted with workers, it was revealed that one illegal worker had been employed at the premises for over two years.
“This prolonged period of illegal employment is significant as it indicates a persistent undermining of the prevention of crime and disorder licensing objective.
“It was also noted workers admitted to being compensated with food instead of monetary payment, which raises concerns about labour exploitation taking place at the premises.
“Such practices not only exploit workers but provide an unfair competitive advantage over businesses that adhere to wage regulations.”
In a letter to Kensington and Chelsea town hall, solicitors acting on behalf of Café Diana said: “Our client is deeply regretting the circumstances that prompted this review and sincerely apologise for any inconvenience, disruption, or concerns caused to the community, local authorities, and stakeholders.
“Immediately upon becoming aware of the reported issues, our client undertook swift and decisive action by evicting the tenant responsible for the unauthorized activities, The Corporate Meeting and Event Service Ltd. This prompt response underscores our client (sic) unwavering commitment to upholding licensing conditions and ensuring compliance with all regulatory requirements.”
The business has asked the council to consider suspending its licence for a three month period, rather than permanently.
The Standard has contacted Café Diana for further comment.
Met Police licensing officer Ian Davis said: “Café Diana... has been associated with the employ of workers without the necessary “right to work” permissions and also concerns raised around the venue benefitting from patronage smoking of charcoal shisha in a substantially enclosed area - an offence under Section 8 of the Health Act 2006.”
