Cash in Hand Work and UC

bigalxyz

Hello forum,

21yo son has been on UC for a while. He's just got himself a cash in hand job paying c. £3/hour (and a free meal every shift) washing dishes in a restaurant kitchen. Better than nothing I suppose (gets him off his backside and out of the house) but obviously illegal (way below minimum wage apart from anything else). I don't much care about whether the restaurant is acting unlawfully, but I don't want my son getting into hot water with the job centre further down the line - benefit fraud etc. He is continuing to claim UC while working, hasn't told the job centre about it and says he doesn't think they will care, but I'm dubious (although I don't know much about this stuff)..

Does anyone have any advice on how he should proceed here? I don't know if I should be pleased (because he's been unemployed for two and a half years) or concerned!

Thanks
A.

TELLIT01

He's potentially got a double problem. If he doesn't report his earnings he is potentially committing benefit fraud. When he does report it, DWP will probably have to take it into account at minimum wage level so the effect will be greater than his actual earnings. He is actually earning way below half the minimum wage for his age and that is illegal. If they are doing it to him they are probably doing the same to other people.
I understand your attitude that it gets him out of the house and off his backside but the employer really should be reported to HMRC.

WhenIam64

but obviously illegal (way below minimum wage apart from anything else)

He should report his earnings to UC as the amounts (at the illegal rate) may be within the work allowance. It may be onwards reported to HMRC but that is not his issue.

but the employer really should be reported to HMRC.

Would argue that it is not your son's role here but he will have to defend (or find proof) of the underpayment to avoid the issue identified by TI01. The restaurant might argue that they are paying NMW but your son is underreporting it. But they'd have to be falsifying their returns to do so which is another problem for them.

AFAIR the penalty for paying less than NMW is £100 per employee per pay period so not a lot as it stands at the moment - unless the restaurant are doing it systematically.

https://www.gov.uk/government/news/national-minimum-wage-penalties-increased-on-rogue-employers

[Deleted User]

My advice to him would be to stay away from this job, apart from the fact that he could be committing benefit fraud, it would be possible that such an employer doesn't have among other things employers liability insurance and even if they did someone they paying cash in hand may not be covered.

sportsarb

I’m pretty sure that if it’s declared, UC would be obliged to take it in at NMW rate, because it’s not legal for less to be paid. That’s how I remember it for legacy benefits.

As for the overall premise, I mean, fraud is fraud and there’s always the chance it will get found out.

tboo

bigalxyz wrote: »

Hello forum,

21yo son has been on UC for a while. He's just got himself a cash in hand job paying c. £3/hour (and a free meal every shift) washing dishes in a restaurant kitchen. Better than nothing I suppose (gets him off his backside and out of the house) but obviously illegal (way below minimum wage apart from anything else). I don't much care about whether the restaurant is acting unlawfully, but I don't want my son getting into hot water with the job centre further down the line - benefit fraud etc. He is continuing to claim UC while working, hasn't told the job centre about it and says he doesn't think they will care, but I'm dubious (although I don't know much about this stuff)..

Does anyone have any advice on how he should proceed here? I don't know if I should be pleased (because he's been unemployed for two and a half years) or concerned!

Thanks
A.

So he is happy to accept a job that pays £4.70 per hour less than the min wage (current min wage is £7.70per hour)
Your attitude implies that it is ok to do this so you thus advacate benefit fraud.
and you know it's not right otherwise you won't ask on here.


Tell him to contact UC that he is working - this will give him experience to then apply for proper jobs.

w06

I'd avoid the employer like the plague and find a job that's paid appropriately (and legally), if the employer isn't complying with this law what other laws, that are there to protect employees and the customers, are they not complying with?

Benefit fraud is benefit fraud, the employer breaking the law doesn't mean that your son should also feel able to.

paddedjohn

Macdonalds are always taking on and they pay more than the minimum wage, tell him to try there

calcotti

WhenIam64 wrote: »

...may be within the work allowance

Unless he has a child or LCWRA he will not have. Work Allowance.