Christine Lewiss failed to pay £11,187 to nine workers who had been employed by her two companies based in Cromer to work on railways in Wales.

One of them had been left £2,500 out of pocket.

Yesterday, Lewiss, from Beacon Road, Trimingham, was ordered by magistrates to pay the men all the money they were owed and which she had kept for herself.

However, the 44-year-old can still run Rail Recruit (UK) Projects Ltd in Prince of Wales Road, Cromer, as magistrates did not have the power to ban her under old legislation after she had earlier pleaded guilty to nine counts of withholding the money from the workers.

Because the offences happened before April 6 she could not be hauled before Norwich Crown Court for tougher sentencing for people who abuse casual workers. She could have been disqualified from running the company for 10 years.

Despite the magistrates' disappointment over their lack of sentencing powers, Lewiss's sentence was praised by the government as part of its clampdown on agencies which abuse casual workers.

Yarmouth Magistrates' Court heard Lewiss had employed two workers through Rail Recruit UK Ltd, which was wound up last November, and the rest were taken on by Rail Recruit (UK) Projects Ltd.

They were hired to work on railways in Wales from 2007 to build rail side troughs for a subcontractor for Network Rail as part of a deal worth more than £100,000 to Lewiss.

The men, who were mostly from the north of England, were meant to be paid between £12.50 and £23 an hour.

Stephen Grayson, prosecuting for the Department for Business Innovation and Skills, said after the work was completed the Employ-ment Agency Inspectorate received a complaint that the nine men had not been paid for their work.

The group had repeatedly tried to contact Lewiss to find out why they had not received any wages. In a statement, Shaun Conner, who was owed £625, said: "I have been fobbed off with excuses each time I telephoned."

Mr Grayson said: "In short, the workers complained they did everything they could to recover these monies and nothing was forthcoming. It means the difference between paying their monthly mortgage or rent or not being able to pay them."

Chairman of the bench, David Breezer, commenting on his lack of sentencing powers, said: "If the offence had taken place after April we would have referred the matter to the crown court."

The bench heard that since Lewiss's first company had been wound up by the high court she had been left with massive debts.

Lewiss and her husband, who are both on benefits, had to rely on her mother for handouts.

It was also claimed that her existing Rail Recruit (UK) Projects recruit-ment agency was not trading or making any money, even though the court was shown evidence it was still touting for work.

Amrik Wahilala, mitigating, said: "This is not the case of Mrs Lewiss not wanting to pay; she could not pay. She is sorry for what has happened. She can't afford to pay her mortgage. She is relying on her mother."

Because of Lewiss's financial position, magistrates did not fine her but ordered her to pay £1,000 towards the prosecution costs.

Last night, Lord Young, the minister for employment relations, praised Lewiss's sentencing by saying: "We are going full steam ahead to tackle agencies that exploit vulnerable workers.

"This action sends a clear signal that we will take action to de-rail rogue recruiters in Norfolk."