The owner of a Ribble Valley country estate breached minimum wage regulations by overcharging a maintenance worker for the rent on his cottage, a court has heard.

Blackburn Magistrates' Court was told the offence had initially been dealt with by the taxman, who ordered Guy Reginald Hindley and Gisburne Park Estate to pay the employee £1,718.

The court was told after that had been done Paul Stewart was called to an "informal" meeting with Hindley and his finance manager, during which he was told he had to pay the money back.

"During the meeting he was told by the finance manager he had to pay the money back," said Gee Leung, prosecuting.

"Mr Stewart said he felt compelled to do that because it had been implied he would lose his job as well as his home if he did not."

Hindley, 47, of Bolton by Bowland Road, Clitheroe, pleaded guilty to two charges of wilfully neglecting to pay Mr Stewart a wage equivalent to the national minimum wage.

One charge related to the period between March 2015 and March 2017 and the second between March 2017 and April 2021.

Gisburne Park Estates faced charges relating to the same period that they refused to remunerate the same worker.

The Estate, which is owned by Hindley, was fined a total of £10,000 and ordered to pay £11,242 compensation to Mr Stewart.

Hindley offered to pay in full within three months.

Passing sentence, District Judge Alexandra Preston said during the first period Hindley had been charging too much rent when HM Revenue & Custom investigated the company.

"The defendant was made aware of the relevant Accommodation Off-set rules, civil penalties were imposed and Mr Stewart received the money he was owed," said District Judge Preston.

"In a subsequent meeting with his employer he was told to repay the money which he did.

"He must have felt obvious pressure to do so given he was reliant on the defendant for not only his job but also somewhere to live."

She said following the meeting Hindley continued to charge his employee the incorrect amount for the rental of his cottage.

"I accept the first period could have been an oversight or a misunderstanding but that cannot be the case for the second period," said District Judge Preston.

"In my view that was a blatant disregard for the law. The minimum wage legislation is there to protect all of us from unscrupulous employers.

"It is there to ensure we can earn a fair living and support ourselves and our families.

"It is important it is complied with, especially where an employee feels beholden and lacks power.

"That is what happened in this case where the employee was reliant on his boss for his job and his accommodation."

Mr Leung said Mr Stewart had been made redundant in 2021 and shortly after was given 14 days to quit his cottage.

He was told he was due £4,000 statutory redundancy pay and believed this was being withheld until he vacated the property. He eventually had to go to ACAS to get the money.

Aoife Ryan, in mitigation, said her client also had a home in Los Angeles and during the first period had left running the business to others because of a family bereavement in America.

"He accepts he ought to have done more to check on the situation," said Miss Ryan.

She said the defendant was currently trying to raise capital in the region of £20 million for the restoration of the Grade I-listed hall on the estate into a luxury hotel.

"This conviction will impact on his credibility in seeking the support for the hotel project," said Miss Ryan.

"The company accounts will show that for the last three years they have been operating at a loss."