Paying people with accommodation?

[Supercan]

This may be a really stupid question, but legally do you have to pay people with actual money, or can you pay them with accommodation/food etc? if they had none- i.e. Homeless people?

 

[PDRD]

No reason you cant 'pay' them in theory then rent a room to them for the equivalent amount. This would probably be the easiest way.

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[Newchodge]

You must pay minimum wage in cash, but can deduct a certain amount from that if you provide accommodation.

 

[Supercan]

Thanks for the advice guys.

Whats this specific thing called? Im trying to gather some info. So if min wage is £6.19 how much could this legally be deducted? If it were to be for food, shelter, clothing perhaps, could 100% be deducted?

 

[PDRD]

If you're not going to pay them anything then there is probably a way of getting around it by saying they are volunteers in exchange for bed and board.....

Someone with more knowledge than me in this area will hopefully be along.

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[Newchodge]

Thanks for the advice guys.

Whats this specific thing called? Im trying to gather some info. So if min wage is £6.19 how much could this legally be deducted? If it were to be for food, shelter, clothing perhaps, could 100% be deducted?

Absolutely NOT

You employ people, you pay them, and they choose what to spend their income on. What are you trying to do here? Just exploit the homeless who have no way of fighting back??

 

[Billmccallum]

see http://www.hmrc.gov.uk/manuals/eimanual/EIM00530.htm

 

[Supercan]

Absolutely NOT

You employ people, you pay them, and they choose what to spend their income on. What are you trying to do here? Just exploit the homeless who have no way of fighting back??

No.. This will work in their favour. Ie they currently have nothing, no food, no shelter, no clothes. This idea(as i say I cannot go into detail) would give them home/shelter/food etc etc etc, but im considering different avenues on costs. Giving them all this for free + payment would make it not viable, hence the question; if that is the case then the idea will probably not move past concept.

 

[PuddlePayroll]

I used to work for a company that used to offer accommodation to employees for a weekly fee which was deducted from their net pay. The employees were paid minimum wage and eventually HMRC investigated the company around the deductions which were found to be linked with the employment and therefore reduced the employee below NMW. The company folded as they couldn't afford the repayments to the employees. They setup as a new company the next day. I worked for them many years later but read up about what happened in their files.

I wouldn't advise deducting anything like this through the payroll on this basis!

 

[Chance1234]

If you provide benefits , then am i not right in thinking you then have to pay minimum wage ? either way, this post sounds pretty wrong

 

[MrCloser]

Genuine homeless, if "no money, no food, no clothing" bracket, some with drink, drugs and personality problems might not be the best employees unfortunately.

The more common NFA 'no fixed abode' and eastern European turnip-pickers maybe, just seems a fine line between opportunity and exploitation Victorian workhouse style.

Saying that, with Cameron's upcomiing benefit reforms and the dire state of our economy you might get a quite a few unemployed professionals applying.

 

[FoneFactoryLtd]

I'd say this could be more trouble that it's - especially people with NFA. It *could* cause all sorts of immigration issues, what if you have a spot check. How are you going to proove you did the necessary checks.

As for you're idea, a true homeless person, has so much other stuff going on, drugs and or drink problems, that they need 12 months of support and help to help them adjust to "normal" living again.

My only other idea is possibly, you can take them on if they where claiming say JSA as I *think* there is some kinda of placement program through the job centre. Not sure what it is called.