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paying below minimum wage
http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=1&t=35853		 Page 1 of 2
Author:  grandad [ Thu Jun 18, 2020 2:33 pm ]
Post subject:  paying below minimum wage
We had a customer in one of our cars yesterday that asked us a question regarding how much a school transport escort should be paid. Our drivers answer was "at least the minimum wage". however the customers husband is currently working for one of our rival company's and he is being paid £4.00 per hour cash in hand. He was advised to report this to HMRC or whoever deals with this but I took a look at the form that you have to fill in and it is ridiculous the information that they want. i am sure that many of us have stories about similar behaviour and i know it is a big problem here because all the County Council are interested in is the cheapest price and they wont entertain complaints from other company's about this happening because I have raised it with them before. In this particular case we lost out in the tendering process because we do everything by the book. Any advice on where to go with this? Could it be classed as modern day slavery?
Author:  Sussex [ Thu Jun 18, 2020 5:35 pm ]
Post subject:  Re: paying below minimum wage
Quote:
Any advice on where to go with this? Could it be classed as modern day slavery?

I'm not too sure the authorities care too much about the inns and outs of those that report complaints about those abusing the national minimum wage, they are more interested in the substance of the complaint.

So if Bill Smith made an allegation, as long as the firm abusing the regulations, and how they are abusing the regulations, is accurate and up to date, that in itself should suffice.

I'm also not sure that every box needs to be filled in.

There must be 1000s of complaints and I'm pretty sure a significant number of those complaints are anonymous.
Author:  Sussex [ Thu Jun 18, 2020 5:37 pm ]
Post subject:  Re: paying below minimum wage
Quote:
for one of our rival company's and he is being paid £4.00 per hour cash in hand.

I would also contact the council that is contracting out the work, because I'm certain any tender would have provisions that ensure the minimum wage is paid.
Author:  edders23 [ Thu Jun 18, 2020 7:07 pm ]
Post subject:  Re: paying below minimum wage
Quote:
There must be 1000s of complaints and I'm pretty sure a significant number of those complaints are anonymous.


very difficult to do you basically have to give them all the information they need to investigate you first so they can prove you are a reliable informant. Otherwise it would be too easy for people to make vindictive complaints.

if you want to make an anonymous complaint you need to write to investigation department hinting that a large sum of unpaid tax is recoverable they rarely act unless there is a financial gain to be had which would justify investigation costs
Author:  grandad [ Thu Jun 18, 2020 10:27 pm ]
Post subject:  Re: paying below minimum wage
Sussex wrote:
Quote:
for one of our rival company's and he is being paid £4.00 per hour cash in hand.

I would also contact the council that is contracting out the work, because I'm certain any tender would have provisions that ensure the minimum wage is paid.

There is nothing in the terms to say that anyone must be paid minimum wage.
When I have brought this up previously with a different operator I was told that as far as the Council was concerned the person could be a volunteer or a relative doing it as a favour. They simply didn't want to know.
Author:  heathcote [ Fri Jun 19, 2020 1:42 am ]
Post subject:  Re: paying below minimum wage
grandad wrote:
Sussex wrote:
Quote:
for one of our rival company's and he is being paid £4.00 per hour cash in hand.

I would also contact the council that is contracting out the work, because I'm certain any tender would have provisions that ensure the minimum wage is paid.

There is nothing in the terms to say that anyone must be paid minimum wage.
When I have brought this up previously with a different operator I was told that as far as the Council was concerned the person could be a volunteer or a relative doing it as a favour. They simply didn't want to know.



First question to be asked,is this person in possession of a valid enhanced DBS check.
Think there may be a problem with insurance cover.
Definitely a problem with cash in hand payments.
Author:  edders23 [ Fri Jun 19, 2020 5:54 am ]
Post subject:  Re: paying below minimum wage
No council will take an interest because at the end of the day it is to their benefit
Author:  grandad [ Fri Jun 19, 2020 6:19 am ]
Post subject:  Re: paying below minimum wage
heathcote wrote:
grandad wrote:
Sussex wrote:
Quote:
for one of our rival company's and he is being paid £4.00 per hour cash in hand.

I would also contact the council that is contracting out the work, because I'm certain any tender would have provisions that ensure the minimum wage is paid.

There is nothing in the terms to say that anyone must be paid minimum wage.
When I have brought this up previously with a different operator I was told that as far as the Council was concerned the person could be a volunteer or a relative doing it as a favour. They simply didn't want to know.



First question to be asked,is this person in possession of a valid enhanced DBS check.
Think there may be a problem with insurance cover.
Definitely a problem with cash in hand payments.

Yes the person does have a valid DBS and a valid badge from the County Council to act as an escort.
Author:  bloodnock [ Fri Jun 19, 2020 11:02 am ]
Post subject:  Re: paying below minimum wage
edders23 wrote:
No council will take an interest because at the end of the day it is to their benefit


Councils are at odd's with their own dogma then as in the usual 100 page epic application documents for council contracts they always ask if you intend paying employees a minimum or living wage...several times. at least here they do.
Author:  wannabeeahack [ Fri Jun 19, 2020 5:17 pm ]
Post subject:  Re: paying below minimum wage
Staffordshires rules insist PA's must be PAYE and paid the NMW

HOWEVER, when asked if this was for the whole trip or just when kids are in the car......

Quote:
That is a matter for contractors and PA's to agree



Its worth noting that HMRC rules state under a set limit then you dont have to register the PA, as this is set as £6250 per annum and schools only run 39 weeks per year not many will be above the £6250 (£160/week x 39)
Author:  wannabeeahack [ Fri Jun 19, 2020 5:18 pm ]
Post subject:  Re: paying below minimum wage
bloodnock wrote:
edders23 wrote:
No council will take an interest because at the end of the day it is to their benefit


Councils are at odd's with their own dogma then as in the usual 100 page epic application documents for council contracts they always ask if you intend paying employees a minimum or living wage...several times. at least here they do.


see my post
Author:  wannabeeahack [ Fri Jun 19, 2020 5:22 pm ]
Post subject:  Re: paying below minimum wage
Quote:
When you must register as an employer?
You would assume that when you take on an employee you must register as an employer.

This is not the case. You only need to register if any of your employees are:

Earning more than £120 a week (tax year 2020/21)
Receiving a pension or have a 2nd job whilst still working for you
Receiving expenses or other benefits from your employment
If none of the above apply then you do not need to register as an employer. However you must maintain records of how much you have paid each employee.



£120/week x 52 = £6240, in the school year...£160
Author:  grandad [ Fri Jun 19, 2020 5:41 pm ]
Post subject:  Re: paying below minimum wage
wannabeeahack wrote:
Quote:
When you must register as an employer?
You would assume that when you take on an employee you must register as an employer.

This is not the case. You only need to register if any of your employees are:

Earning more than £120 a week (tax year 2020/21)
Receiving a pension or have a 2nd job whilst still working for you
Receiving expenses or other benefits from your employment
If none of the above apply then you do not need to register as an employer. However you must maintain records of how much you have paid each employee.



£120/week x 52 = £6240, in the school year...£160

In this particular case the esscort is in receipt of his old age pension as well as his money from the job. The business owner is not registered as an employer.
Author:  wannabeeahack [ Fri Jun 19, 2020 6:34 pm ]
Post subject:  Re: paying below minimum wage
grandad wrote:
In this particular case the esscort is in receipt of his old age pension as well as his money from the job. The business owner is not registered as an employer.


Not being privvy to all the facts means im unable to make a judgement but if the guy is happy with £4/hr...

I totally fail to see how a driver doing a job for me can be self employed but an escort cannot be..
Author:  grandad [ Sat Jun 20, 2020 9:14 am ]
Post subject:  Re: paying below minimum wage
wannabeeahack wrote:

I totally fail to see how a driver doing a job for me can be self employed but an escort cannot be..

Try checking what an escort does against the criteria for being self employed. For instance can the escort pass his work to another person?
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