Quizzes & Puzzles0 min ago
Cash In Hand.
5 Answers
Hi
I have a little predicament at work. I have worked fat the same public house for the last 10 years for 3 different landlords in total. The pub now has a new landlord ( as in he is renting the pub from the owner, who is the father of my last landlord),. My last landlord is stopping on as a manager. When the letting was discussed he stated that all staff would be kept on ( I am the only bar staff). Since the contract has been signed he has gone back on his word and says I can stop there if I agree to be paid cash in hand. I cannot understand why he wants to do this. I don't earn enough for him to have to pay NI or even into a pension plan, I have never had paid holiday. As yet I still haven't met the new owner as he hasn't come to visit, but hopefully he will be in tonight.
Apart from being illegal to not put me through the book it would mean that I loose my Working tax credit.
In a real pickle as I so love my job and don't want to leave but feel I have no choice.
He has suggested that I go self employed but cannot understand what difference this makes as that would have to show up on his books anyway.
Can anyone give me some advice regarding my rights if I have any, or a legal way around this.
I have a little predicament at work. I have worked fat the same public house for the last 10 years for 3 different landlords in total. The pub now has a new landlord ( as in he is renting the pub from the owner, who is the father of my last landlord),. My last landlord is stopping on as a manager. When the letting was discussed he stated that all staff would be kept on ( I am the only bar staff). Since the contract has been signed he has gone back on his word and says I can stop there if I agree to be paid cash in hand. I cannot understand why he wants to do this. I don't earn enough for him to have to pay NI or even into a pension plan, I have never had paid holiday. As yet I still haven't met the new owner as he hasn't come to visit, but hopefully he will be in tonight.
Apart from being illegal to not put me through the book it would mean that I loose my Working tax credit.
In a real pickle as I so love my job and don't want to leave but feel I have no choice.
He has suggested that I go self employed but cannot understand what difference this makes as that would have to show up on his books anyway.
Can anyone give me some advice regarding my rights if I have any, or a legal way around this.
Answers
All you have to do is declare it yourself. The method your employer uses to pay you is largely irrelevant as long as you are up front with the authorities.
14:05 Thu 30th May 2013
He maybe attempting to do it because he believes it saves him money, but he is completely wrong. If you are earning below the NI threshold, there is no employer's NI for him to pay (and no employee's NI either - as I'm sure you know), so there is no saving.
You do have a contract of employment with the organisation (whether you have any bit of paper or not). He probably doesn't think you do. What he is attempting to do is dismiss you and re-engage you as self-employed. For starters, he can't just do that as a redundancy because the job clearly isn't redundant.
In addition, you would not be not self-employed based on the terms you have described the job - to be so, you would have to have control over the hours you did and when you did them (this is but one of the tests HMRC uses). That can never be the way for pub work - you work when called upon and are paid by the hour - being self-employed implies you are paid a lump sum to complete a task of work. It's completely incompatible with any concept of being paid by the hour. The way organisations (who don't wish to take on permanent staff) would get around this is to have you employed by an agency - who then becomes your employer - but then any agency wants a cut, so I'm not suggesting this to you - merely pointing out how these things work.
I'd just go back and point out the above to him and try to elucidate what he thinks he is gaining.
Tora x3 answer is completely wrong, BTW, and it is a pity that people have have no knowledge of these things attempt to answer complex questions that are clearly beyond them.
You do have a contract of employment with the organisation (whether you have any bit of paper or not). He probably doesn't think you do. What he is attempting to do is dismiss you and re-engage you as self-employed. For starters, he can't just do that as a redundancy because the job clearly isn't redundant.
In addition, you would not be not self-employed based on the terms you have described the job - to be so, you would have to have control over the hours you did and when you did them (this is but one of the tests HMRC uses). That can never be the way for pub work - you work when called upon and are paid by the hour - being self-employed implies you are paid a lump sum to complete a task of work. It's completely incompatible with any concept of being paid by the hour. The way organisations (who don't wish to take on permanent staff) would get around this is to have you employed by an agency - who then becomes your employer - but then any agency wants a cut, so I'm not suggesting this to you - merely pointing out how these things work.
I'd just go back and point out the above to him and try to elucidate what he thinks he is gaining.
Tora x3 answer is completely wrong, BTW, and it is a pity that people have have no knowledge of these things attempt to answer complex questions that are clearly beyond them.
Keep notes of all your meetings and what is said. As BM said, you have a contract of employment which will have transferred to the new landlord under the TUPE regulations. You should be getting paid holiday under the Working Time Regulations. If you have any problems come back onto this forum. I smell a rat.