Monetary penalty as a disciplinary action

[The_Hypnotist]

I work in the security industry and I have a friend with a peculiar problem.

His working hours rota is different than mine, even though we work in the same location.

Working hours:
09:00 - 18:00

The issue
For two days in a row, he didn't show up in time (out of his control), missing one hour (the starting hour 09:00 - 10:00) for two days in a row. He worked the rest of the hours as usual, so he provided the security service, except the hours he missed.

Disciplinary action
He received an email from the security agency, saying he needs to pay the value of a day's work, as a penalty for the two hours missed.

He was also asked to modify the invoice to his disadvantage, listing the day of 26th July as a "off" day, even though my friend worked 8 out of 9 hrs, missing one, as mentioned.

I need to repeat that he worked the rest of the hours, he wasn't sent home or something else.

Now, he isn't self-employed yet (like me), even though the agency considers him as such: he sends the work invoice every month, like I do, gets paid in the same day as me, and he's actively trying to get self-employed status as I write these lines.



To me, this disciplinary action that asks for monetary payment sounds like something illegal. I am sure that the client paid the agency for the services rendered by my friend for said working days, but the agency can apply the penalty however they want and pocket the cash without any tax trace.


Looking for solutions

a) Invoice
What can I advice my friend to do so he doesn't screw himself by sending the invoice with the modification requested by the agency?

b) Addressing the disciplinary action
If the current penalty is illegal, what can I add in an email to reply back? Anything worth mentioning that can force the agency to drop the issue?

c) Variation of solution between employed or self-employed
Would the solution differ based on work status? If yes, what's the change that I need to know about?

d) Source links
If indeed illegal, can someone help me with some official sources of information regarding the work/job legislation? I want to research it further and add the info sources as an email reply to refute the agency demands.


The back thought is getting a solution that works if the issue happens to any other of my colleagues, even me.




P.S. UK transportation sucks, this peculiar problem might happen to me sooner or later.

 

[obscure]

What does his contract say about deductions of wages?

 

[Newchodge]

If he is an employee this can only happen if it is specifically allowed in his contract, even then it would probably be an illegal clause.

He must by law be paid minimum wage for all hours worked. If he does not get paid for the hours they intend to deduct he almost certainly won't get minimum wage, which would be a criminal offence by his employer. https://www.legislation.gov.uk/ukdsi/2015/9780111127964

If he were self employed they could almost certainly do this with impunity.

However it is perfectly obvious that self employment in these circumstances is a sham.

 

[Mr D]

So at the moment he's an employee of the agency.

Its from such little things as deductions that big companies end up in trouble with government over not paying minimum wage.
Self employed don't get minimum wage but also others don't control them the same way.

 

[The_Hypnotist]

I will have to talk to my friend about the contract he signed.

I can tell you that he gets paid the full amount of money that's listed on the invoice he sends monthly to the agency, so I guess his status is self-employed, even though he doesn't have such a status.

The hourly wage is £9/hr, so its above the minimum wage.

I will ask him if there are any deduction wages lines in the contract...

 

[Newchodge]

I will have to talk to my friend about the contract he signed.

I can tell you that he gets paid the full amount of money that's listed on the invoice he sends monthly to the agency, so I guess his status is self-employed, even though he doesn't have such a status.

The hourly wage is £9/hr, so its above the minimum wage.

I will ask him if there are any deduction wages lines in the contract...

If he gets paid £9 per hour, but doesn't get paid for 8 hours that he worked, he has lost £72. Take that off his income and see if he still gets the minimum wage for the hours actually worked.

The fact he issues an invoice does not make him legally self employed.

 

[Mr D]

I will have to talk to my friend about the contract he signed.

I can tell you that he gets paid the full amount of money that's listed on the invoice he sends monthly to the agency, so I guess his status is self-employed, even though he doesn't have such a status.

The hourly wage is £9/hr, so its above the minimum wage.

I will ask him if there are any deduction wages lines in the contract...

Its a trick used by some employers to save money. Classing people as self employed while treating them like employees regarding timekeeping, equipment, discipline etc.

The employer saves on holiday pay, pension payments, sick pay, employers national insurance.

Some employments are more ambiguous than others when it comes to employment status.
There are occasional news stories about people who were treated as one thing and acted upon like the other.

 

[The Byre]

The hourly rate of just £9 tells me that this is employment and not in any way a contracted service from a company or someone who is really self-employed.

We occasionally farm out tasks to skilled people who really are self-employed and the rates start at £25 per hour.