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Am I breaking any laws by temporarily employing someone on income support?

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Original Message Added : 23 May 2012
 
hi there, i want employ someone who is on income support for 1 week. i have employer liability insurance. will they have to declare the earnings and am i breaking any laws by doing so? i find it really hard to employ temporary staff legally without a lot of hassle and expense. just after some advice from someone in the know.thank you.

Paul Sanderson from
APS Painting & Decorating
Location :Sunderland
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Reply : 24 May 2012
 
Yes, they will have to declare their earnings and how many hours they work.

It is not at all unlawful for you to employ someone on income support - it is up to them to to tell the DWP that they are working and they will be given forms to fill out.

So as long as you are recording their employment at your end, payroll, HMRC etc. then the responsibility is with the employee to inform the DWP.

If they have informed the DWP, you will be sent a form by the DWP asking you for info about the employment. If you don't receive that form you will know that the employee did not declare their employment.

Jacqueline DruryJacqueline Drury from
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Reply : 27 May 2012
 
There is nothing wrong with you to hire someone on income support, as long as you both declare it.

It depends how much he/she will earn, it does not mean it will affect the income support he/she will get in the future

Harry Lee from
SC Lee Accountant
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Reply : 27 May 2012
 
Thanks for the advice, but surely there must be an amount they earn that will affect their benefits.

Regards,

Paul

Paul Sanderson from
APS Painting & Decorating
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Reply : 27 May 2012
 
What are my other options to employ temporary workers ie. jobseekers, agency workers.

What rights do they have if its just for a week or two?

Paul Sanderson from
APS Painting & Decorating
Location :Sunderland
Joined : 16 April 2011
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Reply : 27 May 2012
 
Paul,

Anyone in receipt of benefits such as Job Seekers/Income Support will lose those benefits if they work more than 16 hours per week.

If they work under 16 hours the amount they are paid will reduce the amount of benefit they receive.

They won't receive their full benefit + earnings from work.

So it is vital that the person on benefits is clear about how they will be impacted by the hours worked and the amount earned.

Jacqueline DruryJacqueline Drury from
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Reply : 27 May 2012
 
Is there an annual figure (income support + earnings) that they cant exceed, then benefit reduction will kick in?

eg. £8000 (income support £6000) + (earnings £2000)

Paul Sanderson from
APS Painting & Decorating
Location :Sunderland
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Reply : 27 May 2012
 
No. The DWP work it out on a week by week basis.

The employee will have to fill out a form that details every day of work - how many hours - and amount earned. They have to hand this form over to the DWP every fortnight.

If the work is temporary they need to know this so that they can tell the DWP - but if they earn too much or work too many hours it could still interrupt their claim.

If the earnings hit a certain level their benefits - even if they are only working part time hours - will stop.

For example if they work 8 hours in one week but they earn £200 for that work - their benefits will stop.

They can of course renew their claim if the work dries up or their earnings dip below benefit levels.

Someone on benefits is rarely better off financially if they work part-time, so they need to be clear of the hours so that they can decide if they can afford it. Ironic.

Jacqueline DruryJacqueline Drury from
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Reply : 27 May 2012
 
ok, but do you know what 'benefit levels' are?

Paul Sanderson from
APS Painting & Decorating
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Reply : 27 May 2012
 
Depends which benefit they are on. But the simple rule is that if they earn the same as their weekly benefit their benefit will stop.

By benefit I am referring to the actual cash for food/bills they receive as opposed to council tax benefit etc. which can still be claimed if you are on a low income. Cash benefit may be only something like £95 per week.

In your original post you said that the work was for only one week. If they work over 16 hours they won't receive their cash benefit for that week.

If they work under 16 hours any money they are paid will be deducted from their weekly cash benefit.

They won't receive their full cash benefit plus the wage you pay them.

They should inform the DWP that the work is temporary otherwise they will have a shed load of other forms to fill out to explain why the employment ceased after only a week.

Jacqueline DruryJacqueline Drury from
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Reply : 27 May 2012
 
ok thanks, 

crikey, i dont think ill bother, it seems like a lot of hassle for us both. looks like im doing an 80 hour week.

do you know of any schemes run by the jobcentre to get people into work that are hassle free?

ie. work experience / work trials

Paul Sanderson from
APS Painting & Decorating
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Reply : 27 May 2012
 
It is a nightmare and trying to get the information out of the Job Centre is like trying to get blood out of a stone.

Yes, there is a work trial scheme which is offered to people who have been unemployed for a while.

They work for you but are paid an extra tenner or so a week by the Job Centre - you don't pay them. At the end of the trial you decide whether you want to take them on full-time or not.

Work trials can't be used for part-time hours.

The idea is that it is a full-time trial that will lead to full-time work.

Jacqueline DruryJacqueline Drury from
Painter Jack
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Reply : 27 May 2012
 
how about agencies, how much do they charge per hour for painters?

Paul Sanderson from
APS Painting & Decorating
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Reply : 27 May 2012
 
Sorry, I haven't used agencies.

Jacqueline DruryJacqueline Drury from
Painter Jack
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Reply : 28 May 2012
 
Paul,

Why do you want to employ someone?

Take the person on in a self employed/sum contract capacity. You will pay them for the job that they do (for example paint house, one week, £250.00). They will sign a disclaimer (do yourself or get from the Internet) that they are responsible for their Income Tax and National Insurance. Keep a copy and give a copy to the person.

They will be responsible for a tax declaration and informing the welfare people.

You will be covered.

Andrew

Andrew TomkinsonAndrew Tomkinson from
Business Insurance Oxford
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Reply : 28 May 2012
 
ok, where do i get a disclaimer on the internet?

Paul Sanderson from
APS Painting & Decorating
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Reply : 30 May 2012
 
Hi Paul,There is currently a subsidised apprentice scheme being offered in my area through the job centre - you would need to check to see whether it was available where you are. Don't quote me on the exact details but the arrangement was (more or less) that you employ a young person for a minimum of 30 hours per week on an apprenticeship which costs you roundabout £80 per week - they work for you for part of that time and complete an NVQ for the remainder of the 30 hours. A grant is offered of £1500 to support these placements. This is a more long term solution and may not be what you are looking for but it is an excellent way of giving someone a start and also getting some breathing space for you intially in terms of cost in the hope that you can use it as a spring board to being able to offer them a permanent position when they gain their qualification. Your local job centre or college would be the starting point for enquiries if this is of any interest to you.Kind regards,Jenny

Jenny FarrarJenny Farrar from
JFA Legal Ltd
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Reply : 30 May 2012
 
Thanks for the advice.

I'm in touch with my local carillion training about taking on an apprentice. Its a health & safety nightmare. Ive literally got to wrap him in cotton wool & sign a form to make sure i have risk assessments, method statements etc. He has to wear hard hat, goggles, mask, high viz vest, padded overalls, reinforced gloves, steely boots at all times. He cant go up a ladder unless its tied at the top and secured at the bottom & only short duration. (try doing that on a brick wall & concrete floor) I cant leave him alone apart from taking a leak. Every paint or product i use has to be assessed for toxins, respiratory irritants, asbestos & gas. I have to display health & safety law poster, site signage, copy of van insurance, data protected accident book, give regular toolbox talks & have a health & safety consultant on tap. This is on top of trying to make a half decent living in one of the worst unemployment hotspots in the country in the poorest payed trade.

It seemed like a good idea at the time.

Paul Sanderson from
APS Painting & Decorating
Location :Sunderland
Joined : 16 April 2011
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Posts :11  ( 1)
Reply : 30 May 2012
 
Paul,

Know exactly where you are coming from! We can't work like that.

However Jenny mentioned the local college and actually that could be a good source of 'casual' staff for you. It may be worth making it known to the local college that you are receptive to hiring students for a week or two.

The students would be interested...

Jacqueline DruryJacqueline Drury from
Painter Jack
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Reply : 20 Jun 2012
 
you should try employing volunteers if that will help and if they are on benifits as long as they do not do more than 16hours per week that is legally acceptable.Laughing

Kasey GarciaKasey Garcia from
As Easy As Life
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Reply : 15 Dec 2012
 
Hi Paul

Did you manage to get this sorted out?

Many thanks

Toni

Toni WardToni Ward from
HPS - Outsourced Payroll Services
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