Childcare Vouchers - Is this allowed?

taliwillow

Hello everyone,

Just a quick one. Is an employer allowed to offer childcare vouchers to just one employee but no one else? The other employees aren't meant to find out apparently but you know how things tend to get out. Just wondered if the employer is trying to hide something by asking the employee not to tell anyone. Does this mean they know what they are doing isn't right?

Thanks

Taliwillow

Spendless

The only thing I can think of is that you can't salary sacrifice if it makes you then have a wage blow min wage (not sure if I'm explaining this well:cool: ). Is it possible that you are higher paid than your workmates, so you can salary sacrifice for childcare vouchers, but your workmates can't and that''s why it's being asked to keep quiet?

taliwillow

Thanks for your reply. No I am paid considerably less than the person who has been told they can have it. About £17k less!!!

MarkyMarkD

If it's a salary sacrifice arrangement, then there's no sense in them offering it to one employee but not another.

But if it's a special "bonus" for that one employee, that's none of your business surely? They can pay anyone whatever they like.

taliwillow

And also to clarify, although I'm paid a lot less than my colleague, I wouldn't go as low as the national minimum wage through salary sacrifice.

taliwillow

Hi Marky Mark,

Thanks for your reply. The information hasn't been passed on in regards to it being a bonus or not although based on the fact that the company are trying to cut costs left, right and centre (including redundancies) I can't imagine they would be offering any bonuses, but you are right, if it is a bonus, then its nothing to do with me, but thats not the way I understand it to be. Perhaps I should just double check that with the person involved.

Thanks

Taliwillow

Spendless

markymark - my understanding is it's the op who's been offered the childcare vouchers and told to keep shtum to the others.

I've got no further ideas -sorry taliwillow.

taliwillow

Hi Spendless,

Just to confirm, it's not me thats been offered them. It's a colleague who has informed me of the situation because shes a bit miffed with them for being very family unfriendly! And she doesn't want them to treat me and other colleagues who will soon be in her situation as unfairly as she feels she has been treated.

Taliwillow

roxalana

I can't think of a reason why the other people wouldn't be offered it if it won't bring them below min wage.

ifonlyitwaseasier

a company must offer it to all all employees, you might not be eligible for them if it takes you below certain wages levels, but the company is running the scheme illegally if only offering to one employee.

i used to work for a voucher firm so i know a lot of firms try to get round it but they end up having to cave in or face sanctions from HMRC

Savvy_Sue

Why would an employer NOT offer it to all? It doesn't cost anything, does it? The employee sacrifices some of THEIR salary, no?