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Need to quit job - Can I claim benefits if necessary?

Slightly strange one but here goes........

Currently employed in the accounts department of a small company. Recently it has come to light that there is a high possibility that certain actions by the directors could be construed as tax evasion and/or money laundering schemes (such as paying cash in hand, not paying taxes on company vehcles, "phantom" invoices, etc,etc.)

Morally I cannot continue to work there knowing that this is going on and also I don't want to risk future employment problems (or end up with a criminal record).

My plan is to resign and in the short term I have managed to get some temporary work (self employed for another company that I know) but this will only last 2-3 weeks at best.

How would this be seen should it be necessary to claim JSA/HB while looking for another job i.e. would the claim be subject to time sanctions or other restrictions?

Any advice you can offer would be great.
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Comments

  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    I think that your problem would be proving your reasons for leaving to JCP. Would you be able/be prepared to do this?
  • marybelle01
    marybelle01 Posts: 2,101 Forumite
    A possibility and a certainty are quite a long way away from each other. I very much doubt that a "possibility" is going to impress the decision takers. If you believe that your company if acting illegally, why not whistleblow? If you do it properly then you get enhanced protections for your position, and it provides evidence that you did something about it. After all, an employee could say any old thing about their employer, but that doesn't make it true.
  • Please be aware that if you do have knowledge of what is going on and an investigation is launched, you could also be prosecuted for not reporting the matter.
    DMP Mutual Support Thread member 244
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  • AppleMatt
    AppleMatt Posts: 138 Forumite
    You will need to resign and claim constructive dismissal, and inform the job centre of this as soon as you sign on.

    Constructive dismissal is a valid reason for claiming JSA.

    Your argument would be a fundamental breach of trust, which is a breach of contract.

    I would also strongly urge you to report any illegal activities to the relevant authorities, as if you do not, this could a) get you in trouble; b) affect your claim.

    More information can be found here :)
    http://www.direct.gov.uk/en/employment/redundancyandleavingyourjob/dismissal/dg_10026696
    Saving in 2013 (#98): £270/£3000
  • It seems rather ironic that you talk about ethics, when you seem to want to play the system yourself?
    As I currently have a small IPA the plan is to continue to work part time with my current employer (probably 3 days per week as a PAYE employee) plus 1-2 days with other companies that are owned by the same director as a contractor plus some ad-hoc hours with some completely unassociated companies if possible. Any income generated into the ltd company will remain within the company so as not to add to my personal income for IPA purposes. Is this something the OR can object to once discharged (they won't really lose anything as it's no problem just working part time which would bring me under the IPA threshold anyway)?
  • AppleMatt wrote: »
    You will need to resign and claim constructive dismissal, and inform the job centre of this as soon as you sign on.

    Constructive dismissal is a valid reason for claiming JSA.

    Your argument would be a fundamental breach of trust, which is a breach of contract.

    I would also strongly urge you to report any illegal activities to the relevant authorities, as if you do not, this could a) get you in trouble; b) affect your claim.

    More information can be found here :)
    http://www.direct.gov.uk/en/employment/redundancyandleavingyourjob/dismissal/dg_10026696

    He would need to prove constructive dismissal in order to avoid a sanction.
  • AppleMatt
    AppleMatt Posts: 138 Forumite
    He would need to prove constructive dismissal in order to avoid a sanction.

    True, but the benefit is paid out as normal, and then reviewed, so no immediate delay :T
    Saving in 2013 (#98): £270/£3000
  • marybelle01
    marybelle01 Posts: 2,101 Forumite
    AppleMatt wrote: »
    You will need to resign and claim constructive dismissal, and inform the job centre of this as soon as you sign on.

    Constructive dismissal is a valid reason for claiming JSA.

    Your argument would be a fundamental breach of trust, which is a breach of contract.

    I would also strongly urge you to report any illegal activities to the relevant authorities, as if you do not, this could a) get you in trouble; b) affect your claim.

    More information can be found here :)
    http://www.direct.gov.uk/en/employment/redundancyandleavingyourjob/dismissal/dg_10026696

    To claim constructive dismissal you must have exhausted the employers internal grievance procedures and /or there must be an immediate breach of contract by the employer which is so great as to justify resigning. There isn't. This has, if anything has, been going on for some time, and the OP has no evidence - it is a possibility that the employer is doing this, and not a certainty.

    If the OP believes that their employer is breaking the law then the correct procedure to use is protected disclosures - not constructive dismissal.
  • AppleMatt
    AppleMatt Posts: 138 Forumite
    To claim constructive dismissal you must have exhausted the employers internal grievance procedures and /or there must be an immediate breach of contract by the employer which is so great as to justify resigning. There isn't. This has, if anything has, been going on for some time, and the OP has no evidence - it is a possibility that the employer is doing this, and not a certainty.

    If the OP believes that their employer is breaking the law then the correct procedure to use is protected disclosures - not constructive dismissal.

    Agreed, I misread the OP and thought this was confirmed. marybelle01 is right, ignore me, my training was a few years ago now :rotfl:
    Saving in 2013 (#98): £270/£3000
  • scootw1
    scootw1 Posts: 2,165 Forumite
    It seems rather ironic that you talk about ethics, when you seem to want to play the system yourself?
    I consider that sort of thing disgusting and a kick in the teeth to people who are honest with their income levels so end up having to pay the full IPA.
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