Advice Welcome on 'Slave Rates'

krashovrload

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Any advice welcome…

My friend (who is over 21) is classed as self-employed and works as a car valet although he is only able to work for a single ‘employer’at a single location. He works 5.5 days(7.30am – 6.30pm in the week and ½ day on Saturday).

They also stop 7% of his earnings for Insurance and he has to pay £3 per week for his uniform. They also supply all his cleaning products and equipment. He works for a company called Assured (who have the car valeting contract forEuropeCar).

In addition, his boss ‘threatens’ him by saying that if he fails to check tyre pressures properly and the clients have an accident then he will be personally liable to prosecution etc.

He is paid a ‘piece-rate’ of £2.15 a car and can manage a maximum of 2.5 cars in an hour. He can therefore only earn a maximum of £5.37 an hour.

I understand that working on piece-rate he should be able to achieve the minimum wage rate every hour (working at a steady safe rate).

The maximum he has ever completed in a day is 25 cars in 11 hours which meant he achieved £53.75 (or £4.87/hour). Yesterday he completed 16 cars which meant he achieved £34.40 (or £3.13/hour).

He is not happy with the job but doesn’t want to quit as he thinks he will be blocked from applying for benefits if he did. Additionally, he doesn’t want to tackle his boss about the rate per car as this might create friction at work.

He is thinking about going to college and will get thecourse funded if he is in receipt of benefit but if he is in work (even if a very poorly paid one!) he will have to pay about £1000 for the same course.

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scooby088

As he is classed as self employed and leaves self employment he will not get a sanction for claiming JSA well I didn't when I was classed as self employed. That being said you friend can go onto hmrc and to see if he is self employed I think he may be surprised with the answers he might find.

306chris

scooby088 wrote: »

As he is classed as self employed and leaves self employment he will not get a sanction for claiming JSA well I didn't when I was classed as self employed. That being said you friend can go onto hmrc and to see if he is self employed I think he may be surprised with the answers he might find.

Same here when I left SE I thought i was in for a whole heap of trouble, but not a word said.

I was in a similar situation i.e. working for what was less than MW and only working for one person

McKneff

HMRC decide who is self employed and not an employer.

Sounds as if he is 'employed; to me. He needs to contact HMRC for some guidance.

Takeaway_Addict

It sounds like he is employed as above but if he isn't then slave rates don't apply because if they were slave rates he wouldn't have a choice...but he does. He could just leave that job.

gibson123

If he is actually considered employed, he could have a claim for backwages and if he is then sacked, because he is eligible for NMW he can go to a tribunal (no qualifying period for this).

patman99

At a guess, I would hazard a guess that he is forced to work as S/E, it is an illegal ploy by the 'employer' to actively avoid SSP & holiday entitlement.

ohreally

HMRC offer the following

As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:
•Do they have to do the work themselves?
•Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
•Can they work a set amount of hours?
•Can someone move them from task to task?
•Are they paid by the hour, week, or month?
•Can they get overtime pay or bonus payment?

If the answer is 'Yes' to all of the following questions, it will usually mean that the worker is self-employed:
•Can they hire someone to do the work or engage helpers at their own expense?
•Do they risk their own money?
•Do they provide the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves?
•Do they agree to do a job for a fixed price regardless of how long the job may take?
•Can they decide what work to do, how and when to do the work and where to provide the services?
•Do they regularly work for a number of different people?
•Do they have to correct unsatisfactory work in their own time and at their own expense?

Janey7

In addition to the general principles listed above, the HMRC also have got a quiz that your friend can do to find out if he is likely to be considered 'truly' self-employed:

http://www.hmrc.gov.uk/calcs/esi-01.htm

krashovrload

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Thanks all - I will pass the information on.

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