1. Welcome to the new-look UKBF! Check out our FAQ guide.

employer refusing to pay wages!!!!

Discussion in 'Legal' started by natloued, Mar 23, 2012.

  1. natloued

    natloued UKBF Newcomer Free Member

    Posts: 2 Likes: 0
    Hi there, I'm brand new to the site and hoping someone may be able to help me.

    My younger sister has been working for a local takeaway restaurant for the last year. She recently handed in her notice (which she was more than happy to work) as she found full time employment at another company.
    She is phoned in sick one night this week and the manager of the restaurant has now refused to pay her her last weeks wages saying that seeing as she phoned in sick he has sacked her and is refusing to pay her what he owes her from last weeks wages (which she worked in full).
    Is this legal? Surely he is unable to withhold wages which she has worked for? he is saying that this is at his discretion. Am i correct in thinking that we have grounds to take him to a tribunal?
    i would like to know where we stand. If anyone can help it would be greatly appreciated! Many thanks!

    P.S My sister has no contract of employment
  2. Big Pete

    Big Pete Banned

    Posts: 1,954 Likes: 418
    No contract so he can do what he likes assuming its cash in hand of course ?
  3. natloued

    natloued UKBF Newcomer Free Member

    Posts: 2 Likes: 0
    it is cash in hand.. Surely we can still take him to a small claims court??
  4. Big Pete

    Big Pete Banned

    Posts: 1,954 Likes: 418
    messy and hassle and his word against hers i would say . maybe someone else could have different view but thats how i see it ..
  5. yourcreditmanager

    yourcreditmanager UKBF Contributor Free Member

    Posts: 232 Likes: 62

    Wouldn't your sister be better off seeing the local citizens advice bureau in person...?

    Even if they can't help her directly they may be able to put her in contact with a solicitor who could give a free initial consultation based on the facts of the case and explore what options exist (if any) for her to try to recover her unpaid wages.

  6. tony84

    tony84 UKBF Regular Free Member

    Posts: 3,710 Likes: 565
    In theory you have to be paid for anything that you work.
    If its cash in hand there is no proof she ever worked for them.

    She could push it and threaten to report him to hmrc, but then she would be cutting off her nose to spite her face as it could result in her being investigated and fined too.
    • Thanks Thanks x 1
  7. GreatSEO

    GreatSEO UKBF Regular Free Member

    Posts: 2,571 Likes: 369
    Does he have CCTV or is there CCTV in the street as this would prve what times she went into work and left.

    I would point this out in a letter explaining that it is also tax evasion etc for an employer to pay people cash in hand and that he will be named and shamed to the local journalist should he not pay monies owed. However it is fair that she is not paid for the sick night off.

    This should put an end to it quite quickly.

  8. bovine

    bovine UKBF Regular Free Member

    Posts: 913 Likes: 188
    Its not illegal to pay cash, but it is to not record the payments and deduct the relevant tax/NI. We dont actually know this to be the case, the OP just said they paid cash and may not have understand the wider meaning of "cash in hand".
    • Thanks Thanks x 2
  9. Chris Ashdown

    Chris Ashdown UKBF Regular Free Member

    Posts: 4,604 Likes: 1,016
    Where does he say they were paid cash in Hand??

    He said there was no contract which is illegal as they must be given a copy within I think 30 days

    Wages should be paid along with any holiday pay due, Holiday pay applies to all pro rata to days worked

    If she has worked the full year then protected by right to tribunal for unfair dismissal

    If she has not worked a full year still entitled to pay and holiday pay for hours worked

    Suggest she writes a letter to employer stating she is owed X amount with hours worked and any holiday pay due and send it by registered post and keep a copy herself

    If employer takes no action then go to CAB for advice
    • Thanks Thanks x 1
  10. Principal HR Solutions

    Principal HR Solutions UKBF Newcomer Free Member

    Posts: 12 Likes: 4
    Hi natloued

    Bovine is absolutely right. The EmployER can pay cash in hand but they must meet their obligations by deducting national insurance and tax and accurately recording/declaring to HMRC.

    The risks of agreeing to work for cash in hand is that the employEE could end up having to ensure they are the ones paying NI and tax as well as declaring full earnings via self assessment at the end of the year to HMRC if the employer fails to do so. There also lies the risk of possibly losing employment rights and benefits as earnings are harder to prove if poor documentation or underhanded practices are happening.

    Having a contract is important but there are statutory rights that give a level of protection nevertheless i.e. being paid for the work done!

    In this situation, i would advise writing to the employER advising them that they have acted unreasonably and unlawfully by:

    a. not paying the hours that have been worked which should detail whether breaks are incl or excl

    b. dismissing from employment illegally and unfairly

    Advise them that you are currently seeking further advice (many options are available to you the CAB, if in a Trade Union then give them a call and also i represent an HR Consultancy so feel free to pm me - I'd be happy to help).

    Its so sad when things like this happen but the reality is that they still do!

    Hope you get a satisfactory outcome from this

    Best wishes

    Chipo Rapson
    Managing Director & Employment Specialist

    Principal HR Solutions Ltd
    Did you find this post useful? Contact Principal HR Solutions Ltd for more employment law advice and services.
  11. bovine

    bovine UKBF Regular Free Member

    Posts: 913 Likes: 188
    Chris, thats where it says they get paid cash in hand :)
  12. Chris Ashdown

    Chris Ashdown UKBF Regular Free Member

    Posts: 4,604 Likes: 1,016
    Must admit I missed that, but it still does not effect the girl, however she is paid it is the responsiility of the employer to take paye and ni and they should give her a pay slip

    Agreed it may have been known by both parties, that it was to be done without paye or Ni, but it's still not the problem of the employee and she is still entitled to full employee law protection and benefits
  13. KingsandQueens

    KingsandQueens UKBF Newcomer Free Member

    Posts: 82 Likes: 7
    Turn up with a few friends and demand cash there and then, especially if it busy.