One employee - maternity pay?
Discussion
At home, we employ a lass to do the gardening. She is nice and we pay her well (all above board - pay her net but pay tax to HMRC). We also give her accomodation and she is free to raid the fridge for food during the day.
She is now getting married and is moving out. She has just asked for a contract. I would prefer not to be in a position where we have to pay maternity pay, if she gets preggers.
I realise that sounds completely unreasonable on my part but we have basically supported her through a lot and I really don't want to fork out months of materity pay out of my post-tax pay (which has dwindled in the credit crunch). Right now she is lucky to have a job with us at all.
She is now getting married and is moving out. She has just asked for a contract. I would prefer not to be in a position where we have to pay maternity pay, if she gets preggers.
I realise that sounds completely unreasonable on my part but we have basically supported her through a lot and I really don't want to fork out months of materity pay out of my post-tax pay (which has dwindled in the credit crunch). Right now she is lucky to have a job with us at all.
DocJock said:
Tell her to set up as self-employed and invoice you
This. Why would you expect a contract for what seems to be part time casual work? Avoid a world of pain.If she is worried about security you could have a contract that dictates notice periods, but I can't understand why you would be dealing with her tax...
DocJock said:
Tell her to set up as self-employed and invoice you
Thanks. I guess that would help her to claim her travel expenses against tax too - she'll now have to commute rather than roll out of bed.db08 said:
maybe the credit crunch is why she is asking for a contract, for her security
Not sure that it is the main reason. She actually asked for a pay rise, so I rather doubt that she is aware of how bad the world is out there.NiceCupOfTea said:
If she is worried about security you could have a contract that dictates notice periods, but I can't understand why you would be dealing with her tax...
We are her employer so she is effectively on PAYE. We give her the net cash and we pay NI and her tax to HMRC, as any employer would. However, we have always quoted her salary as net to her (a hangover from when we had nannies - that seems to be what you do).I think again the self employed route would allow us to pay her gross, let her worry about tax and have an SLA in place to cover what needs to be done.
Edited by AstonZagato on Saturday 7th March 11:33
AstonZagato said:
Not sure that it is the main reason. She actually asked for a pay rise, so I rather doubt that she is aware of how bad the world is out there.
I was going to ask if she was expecting a pay rise now that you were not giving her a place to live. She will soon realise that she is better off on benefits now she has rent to pay!Sheets Tabuer said:
You aren't obliged to give her a written contract if you don't want to. An employment contract can be issued verbally if you wish.
Check this site out for more info: http://www.businesslink.gov.uk/bdotg/action/layer?...
Check this site out for more info: http://www.businesslink.gov.uk/bdotg/action/layer?...
AstonZagato said:
Sheets Tabuer said:
Don't do anything until you've got some proper advice from an accountant IMHO - maybe EricMc can give you some pointers. SE sounds the way to go IMHO though.
Sounds to me like she is already an employee, that means even getting rid of her if you want to may cost in redundancy payments etc, especially if she has worked for you for a while. No contract as mentioned, pretty much just means assumed/verbal contract, I assume you already give her sick pay and holiday pay etc? TBH if you can get her quietly to move onto self employed basis, invoice you gross and she sorts the rest then that has to be the best option. Tread very carefully though, last thing you want now is some kind of constructive dismissal case looming over you, expect much nastiness if it starts to look like you were pushing her out due to a worry of her becoming pregnant.
Edited by touching cloth on Saturday 7th March 09:05
If she is employed she is deemed to have the same rights under contract as if she had one. So not issueing a contrcat actually puts you in a weaker position. If she is employed over certain hours and money she is due materaty pay.
You could look at her going SE BUT she must be genuinely self employed this would mean tendering for work and having other customers. If she worked full time for you and took instructions off you then she is employed.
There are potentially loads of issues with someone on staff permanently. It fine if it is a gardener with a van and he/she does a day or two a week and has other clients and you don't enforce hours etc.
All I can suggest is take some advice. If not you could have the whole tribunual and maternity pay issues if you are not careful.
You could look at her going SE BUT she must be genuinely self employed this would mean tendering for work and having other customers. If she worked full time for you and took instructions off you then she is employed.
There are potentially loads of issues with someone on staff permanently. It fine if it is a gardener with a van and he/she does a day or two a week and has other clients and you don't enforce hours etc.
All I can suggest is take some advice. If not you could have the whole tribunual and maternity pay issues if you are not careful.
I take it she's a full time employee. If so and she can prove the dates that she started, then you are already up the creek. You can't force her to go self employed. There is a test for people being self employed and from the sound of it, she doesn't meet the criteria.
Let me get this right, she's worked for you for years, has now got married and you want to get out of your statutory obligations as an employer?
You don't have to have a written contract, but you as an employer do have to provide at least a "written statement of employment particulars" this should include things like pay, hours of work, holiday entitlement, sick pay, notice and disciplinary and grievance procedures.
However, no matter what the law says, the onus is on you to sort this out amicably, you are automatically assuming the worst and to be honest, what's wrong with giving her an employment contract? She already has one, just not one that's written down.
Let me get this right, she's worked for you for years, has now got married and you want to get out of your statutory obligations as an employer?
You don't have to have a written contract, but you as an employer do have to provide at least a "written statement of employment particulars" this should include things like pay, hours of work, holiday entitlement, sick pay, notice and disciplinary and grievance procedures.
However, no matter what the law says, the onus is on you to sort this out amicably, you are automatically assuming the worst and to be honest, what's wrong with giving her an employment contract? She already has one, just not one that's written down.
AstonZagato said:
I would prefer not to be in a position where we have to pay maternity pay, if she gets preggers.
I realise that sounds completely unreasonable on my part but we have basically supported her through a lot and I really don't want to fork out months of materity pay out of my post-tax pay (which has dwindled in the credit crunch). Right now she is lucky to have a job with us at all.
Why would you not want to pay maternity pay it wont cost you a penny? In fact you will get 4.5% of any statutory pay as compensation.I realise that sounds completely unreasonable on my part but we have basically supported her through a lot and I really don't want to fork out months of materity pay out of my post-tax pay (which has dwindled in the credit crunch). Right now she is lucky to have a job with us at all.
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