What advantage would an employer get from not putting an apprentice through the books?

anto135

Questions in the title really, just wondering what the benefit is to the employer as I know of someone who couldn’t get furloughed as they’re an apprentice and the employer rather than doing it properly they had just transferred the money from their bank into the apprentices.
What would the employer get out of this situation as the apprentice is on the minimum wage for an apprentice?

Masomnia

Save on NI mainly. It's quite risky for the employer to do this, and it is them taking the risk. But it's not great for your friend as they might not be getting their national insurance credits they could be due.

anto135

Thanks for the response, main reason I’m asking is a little lengthy. Basically she’s a hairdressing apprentice and during the lockdown her boss tried claiming furlough for her but couldn’t due to her “not being on the books” before the cut off date even though she’d been working there months before. During this, her boss paid her under what she actually would have received under furlough during this period to help her get by. The boss told her afterwards she was getting a loan to improve the salon and she would pay what she should have received under furlough out of the loan. She’s had the loan and done the salon but never paid her what she said she would so my friends been upset and sent a long message in a genuinely really nice way about this and also that her boss advised she’d get a pay rise in February which she never got and her boss has asked her to a meeting this morning. The boss has said she’s completely in the wrong for what she’s said and she’s paid what she should be on for an apprentice (fair enough but she shouldn’t have promised a pay rise) and apparently she’s taking advantage of the boss by saying what she has? My friends devastated about all this now and wish she’d never said anything.
 I was just asking in case they try to get rid of her after this to see if she could be reported for employing her but not paying her in the correct way.

This may sound petty but I want to make sure there’s something to follow up on if they do get rid of her because all she’s done is explain how she feels to her boss and asked about things her boss said she would do previously. 

Lomast

Is she actually on a proper apprenticeship scheme? If she is i would ask the training provider for advice

Emmia

The boss sounds pretty shady - can your friend get the training they're seeking by working as an apprentice at another salon?

Brynsam

From the sound of it, this isn't a genuine apprenticeship but just using your chum as cheap labour. Does she get time off (usually a day week, paid) to attend college or a similar training establishment? What actual, nationally recognised qualifications will she have at the end of this 'apprenticeship'?

JCS1

How many days a week does your friend work?  just wondering if she may be under the NIC limit and that's why not on the Real Time Information.

LilElvis

JCS1 said:

How many days a week does your friend work?  just wondering if she may be under the NIC limit and that's why not on the Real Time Information.

Very likely as the minimum wage for an apprentice aged under 19 (or in 1st year) is only £4.15 per hour so even a full working week wouldn't attract tax, employees or employers NIC.

anto135

She’s on 4 days a week and earns 180 a week. I’ve also found out the meeting this morning would of been recorded by the recently installed cameras, doesn’t she need to consent to have it recorded? The cameras are in the staff room which no ones given consent to Previously anyway but that’s another point. I don’t know if they actually need to give consent for it but they’re the cameras in which you get a live stream from your mobile and the boss’s husband apparently regularly watches them, I feel as though consents needed for these in general anyway considering they have a 15 year old Saturday girl there.

LilElvis

If she is an apprentice aged under 25 then there is no tax or national insurance due on earnings of £180 per week so there has been no underpayment to HMRC - https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2020-to-2021

Brynsam

anto135 said:

I’ve also found out the meeting this morning would of been recorded by the recently installed cameras, doesn’t she need to consent to have it recorded? The cameras are in the staff room which no ones given consent to Previously anyway but that’s another point. I don’t know if they actually need to give consent for it but they’re the cameras in which you get a live stream from your mobile and the boss’s husband apparently regularly watches them, I feel as though consents needed for these in general anyway considering they have a 15 year old Saturday girl there.

Given the staff all know the cameras are there, unlikely to be an issue if the meeting was recorded. What you 'feel' isn't relevant.