An investigation has been launched into a fitness centre due to close on Saturday by consumer affairs officials.

The Government confirmed that it was looking into The Athletic Club in Hamilton, which will transfer its members to another city gym.

The probe was started amid separate concerns that the gym owners were not up-to-date with staff social insurance contributions, despite deductions from workers’ pay packets.

Kym Herron Scott, the company owner, said on Sunday that she tried to operate the business “in a fair and open manner, in compliance with the law”.

She announced earlier this month: “With the increased costs in running a company and the lease not being renewed, December 1 seems like the right time to move the clientele and keep the membership costs down.”

Mark Simons, who used The Athletic Club for about 13 years, said last week that the gym ran membership drives with deadlines at the end of September and October.

He said one offered the best rates to customers that signed up on a monthly auto-debit plan or made an annual payment.

Mr Simons added: “She has taken people on to those and there have been huge fights — verbal — with people who try to get their money back and she’s told them that the penalty for getting their money back is $250.”

A post on the gym’s Facebook page showed that a 35th anniversary “special” offered options for three-month memberships, personal training sessions or class bundles, with a September 30 closing date.

And a source said that a recent promotion included upfront payments of $350 for three months or $1,350 for a year.

The closure announcement was made on November 7.

Mrs Herron Scott said this week: “Until the decision was made to close the main facility, there was no reason to function outside of business as usual.”

She added that “provisions” were made for members at Magnum Power Force Gym on Church Street, where customers on quarterly or annual prepaid packages could use memberships until they expired.

A frequently asked questions flyer showed that “VIP annuals paid monthly by debit or credit card automatically” would pay the same rates as they had at The Athletic Club until the end of February 2020.

It added: “If you choose to cancel, please complete a cancellation form at reception by the 15th of the same month you wish to cancel.”

A spokeswoman for the Ministry of Home Affairs, which runs consumer affairs, said: “An investigation on the matter is ongoing and it would be inappropriate to provide further comment at this time.”

Concerns have also been raised about social insurance contributions, which it was claimed were inconsistent, although employees were reported to have seen deductions made on their payslips.

A source close to workers at the club said: “A member of staff inquired if the social insurance was up-to-date, that was around June, and it wasn’t.

“There were no payments at all, so everybody else looked into their social insurance and it was either bits missing or nothing at all.”

Mrs Herron Scott was asked about social insurance contributions as well as a number of other employee-related concerns.

She said: “The Athletic Club has been in business for 35 years.

“I have been involved for 32 of those years and have always done my best to operate in a fair and open manner, in compliance with the law.”

A Ministry of Finance spokeswoman said information on the status of social insurance contributions could only be given to the person involved or the organisation named on the account.

She explained: “When contributions are made to Department of Social Insurance under the Contributory Pensions Act 1970, the department becomes custodians of the funds which could benefit the contributor in the future.

“Presently, there is no law mandating employers to notify employees of any discussion between the employer and Social Insurance. However, Social Insurance inspectors do advise employers to notify their employees.

“As of October 2019, 31 per cent of employers and self-employed persons are not current with their social insurance payments and have balances over 90 days past due.”

The spokeswoman added that if an employee suspected their social insurance was not being paid, they should ask for a record of their contributions at the department, or by e-mailing SIContributions@gov.bm.

She said that complaints about non-payment can be sent to the same e-mail address, made in person at the department or by phone at 294-9242.

The spokeswoman added: “If it is found that an employer has been deducting an employee’s contribution payable and fails or neglects to pay the deducted funds to the Department of Social Insurance, an offence is committed under The Contributory Pensions Act 1970, and the offender is liable to a fine of $1,000 for each offence.”

Lovitta Foggo, the Minister of Labour, Community Affairs and Sport, said earlier she was aware of “workplace concerns” at a local fitness centre, understood to be The Athletic Club.

She added that the ministry was “monitoring the matter”.

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