Staff refusing to work overtime because of tax credits.

big_finger

hello.

Im a small employer in the north east and we are a fairly seasonal business and april if a busy month for us and its also end of year stock take. no problem i though ill get some extra hours off my workers with some overtime to help fill the orders and get the stock take done in this stupid 3 day week they have imposed on us next week.

however.

70% of my staff (anyone with a family) are refusing to work the overtime offered as they say.

1. the money is taken off them by tax credits (thier credits are reduced)
2. if they tell hmrc that they have worked overtime they stop the credits while they work it out and they have to survive without the credits they have come to rely on.

i called hmrc and they didnt seem to know the answer or be able to explain thier own system to me.

can anyone on here help ? i find it hard to belive that the goverment has hamstrung bussiness by penalising people fortunate enough to be in regular employment and in a bussiness that doing well.

any and all help appreciated.

brightonman123

why not advertise for extra staff, to cover the overtimer hours needed?

KimYeovil

I don't think there is a solution - it is an abominable situation. But each time this reality is pointed out the usual suspects pipe up screaming "basher".

Once the busy period is over what I would do is offer more hours to those who worked extra and reduce the hours of the shirkers to fifteen hours or less per week.

RAS

The second problem is certainly true; these forums are crammed with people in dire circumstances for anything from 4-12 weeks whilst their tax credits are stopped and reassessed.

However, they do not have to tell HMRC about the overtime this week.

You might be better off offering a day in lieu, as then their projected and actual earnings will be consistant over the year.

Of course, they may not want over-time in the week of school holidays with two Bank Holidays looming, all at very short notice.

dmg24

Sack them (very easy if they are in the first year of employment) and recruit staff who are committed to the business.

Skintgirlx

Perhaps if you paid your workers more in the first place, then they wouldn't be reduced to relying on help from the State? Just a thought.....

lynzpower

Could you ask them to work it then pay them for the days as a leaving bonus when they go on to find proper, non-seasonal sustainable work?

laisbojar83

Please someone correct me if I am wrong but I think everyone has a 10k disregard (25k last year) exactly because people can not predict the odd overtime. To me, they just do not want to work the extra hours.

melly1980

Skintgirlx wrote: »

Perhaps if you paid your workers more in the first place, then they wouldn't be reduced to relying on help from the State? Just a thought.....

People get paid what they are worth to a business. Given that you can get tax credits up to about 50K you are making a big assumption that this guy does not pay his staff reasonbably.

If they feel they arent paid market rate, they can opt to go elsewhere. If they are paid market rate then it is up to them to up their ability, qualifications etc to better THEMSELVES rather than to expect someone to simply just pay them more.

It ****ing annoys me just how many people want something for nothing.

nottslass_2

laisbojar83 wrote: »

Please someone correct me if I am wrong but I think everyone has a 10k disregard (25k last year) exactly because people can not predict the odd overtime. To me, they just do not want to work the extra hours.

Yes there is a 10k disregard - so unless the overtime amounted to more than this they wouldn't loose anything.

Maybe the company pays so little or treats the staff so badly that they simply don't want to be at work a moment longer than necessary or it could simply be because of the fact that they have children and maybe unable to work O/T because of childcare commitments ?

dmg24

nottslass wrote: »

Yes there is a 10k disregard - so unless the overtime amounted to more than this they wouldn't loose anything.

Maybe the company pays so little or treats the staff so badly that they simply don't want to be at work a moment longer than necessary or it could simply be because of the fact that they have children and maybe unable to work O/T because of childcare commitments ?

How rude! There is nothing in the OP to suggest that they treat their staff badly.