Would you work for less than minimum wage?

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  • dippy3103
    dippy3103 Posts: 1,959 Forumite
    First Anniversary Combo Breaker First Post I've been Money Tipped!
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    Well if it's your only job & you are earning less than around 10k you won't pay tax because that's your personal allowance. So their tax argument is a moot point. They are ripping you off & flouting the law.

    I suggest you report them... Agree with NMW or not it's the law & therefore they have to abide by it.
  • dippy3103
    dippy3103 Posts: 1,959 Forumite
    First Anniversary Combo Breaker First Post I've been Money Tipped!
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    tomtontom wrote: »
    I would work for less than NMW, but not in the circumstances described - they are pulling a fast one.

    When I do research projects if you broke down my income to an hourly rate it would at times be lower, but I do it because a) I love the work, b) I am aware of the benefits my work can bring for others, and c) the more work I do the higher profile I get, which brings with it a higher income. So yes, I would do it if it had greater benefits in the long term.

    In answer to your question I would only work for less than NMW in those kind of circumstances ^^^
  • agrinnall
    agrinnall Posts: 23,344 Forumite
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    Well you're being paid cash in hand so you cant really keep it/make it above board.

    I do some cash in hand work for £5.50 per hour which is below the NMW but as Id pay 20% tax on that plus NI, I'm happy to take it and keep stum as I'm better off for it. If it was my sole job, Id kick up a fuss or report it.

    Given that the OP is only receiving £25 a week and this appears to be their only job then getting paid cash in hand really isn't a problem, there's no tax, Employee's NI or Employer's NI due and I believe there are exemptions from needing to provide a pay slip in this type of circumstance. You, on the other hand, are evading tax so both you and your employer are breaking the law.
    If everyone on the NMW was given an uplift to the living wage that wouldn't that push some prices up and the new NMW wouldn't be enough to support everyone on it.


    Some people have to earn below average and some above average for the capitalist system to work.


    There are alternatives, but you don't want to go there.

    You seem the be missing the point that the living wage is still a very long way below the average wage, everyone receiving it would be in the below average group.
  • steampowered
    steampowered Posts: 6,176 Forumite
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    If they dismiss you for claiming the minimum wage, that is automatic unfair dismissal and can be brought to an Employment Tribunal.
  • mattcanary
    mattcanary Posts: 4,420 Forumite
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    Employers are breaking the law in two respects:


    1) by paying below the minimum wage
    2) not deducting any tax from OP's pay.


    Of course, you shouldn;t accept a further decrease in your pay rate for more hours worked. You shouldn;t be working on this basis, full-stop.
  • mattcanary
    mattcanary Posts: 4,420 Forumite
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    yes, i reckon i can get foreigners working for me for less than minimum wage if it was abolished. More profit for me



    You really are a lovely piece of work, aren;t you?
  • Gavin83
    Gavin83 Posts: 8,751 Forumite
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    I would probably be speaking to them, reminding them that to pay under minimum wage is illegal and before you reported them you wanted to give them the chance to correct this 'oversight' on their part. Also tell them you'll be expecting any arrears too.

    If they don't play ball report them. Currently the fine is a maximum of £20k plus they'll make them pay arrears to you. They are currently looking at making this fine per employee as well. Being a small takeaway who clearly doesn't get much business I doubt they could take that kind of fine so they'll probably cooperate.
  • HardCoreProgrammer
    HardCoreProgrammer Posts: 155 Forumite
    edited 23 August 2014 at 12:49PM
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    gayleygoo, I am very sorry to hear about this. People like your employer give all Chinese a bad name. Believe it or not, we are not all like them! I would not excuse what they are doing.

    From personal experience I know this kind of corner-cutting also went on in the past too - it is just that the exploitation was done on illegal Chinese immigrants when the penalties for employing illegals were less severe.

    In principle, I would say that leaving things like this unreported eventually works against the interests of everybody. However, you must accept that whistleblowers, despite doing a public good but having "spilt the beans", are not going to be well accepted. If you complain, you will almost certainly lose your job and you will be unlikely to get employment in other Chinese takeaways.

    How much do you need the money? As you said, if you don't do the job, many others will. If you cannot find other better jobs and you need the money to pay the bills, you don't really have a choice unfortunately.

    One final point: you say that you live within walking distance of the takeaway, so I suppose your employer knows where you live. If your employer has links to triads (for example), you could compromise your safety by reporting to the authorities. Please stay safe and good luck with whatever you decide.
  • dirty_magic
    dirty_magic Posts: 1,145 Forumite
    First Anniversary First Post Combo Breaker I've been Money Tipped!
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    It's illegal and if there is no record of you working there you won't accrue any years of NI contributions. You wouldn't anyway on that wage, but it could affect you or other employees if you work more hours.

    There's no advantage to cash in hand any more as the tax threshold is so high, and chances are if they're not above board with minimum wage they also won't offer any of the other benefits of legitimate employment, such as paid holiday entitlement.

    I'd start looking for work with a decent employer if I were you!
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