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Is this legal?

There's a small restaurant business in my town that keeps hiring people for a couple of months, fires them and then hires new people to fill the exact same positions.

They are paid under the table so they're not paying tax or anything, rumors are going around it's so that the business saves money doing this? :confused:

How are they saving money? Is this legal? Should I report it?
Reply 1
Avatar for harreeeee
harreeeee
12
If they are dodging tax then its illegal. I think you can still pay employees cash in hand but everything must be kept on record and reported to hm revenue and customs.

However I think its still fairly common to see cash in hand in restaurants. My friend is a chef, he has worked in about 5 different places, and a few of them paid cash in hand.

Also, he says many many restaurants do not give their employees the correct amount of breaks, just because they cannot spare the time normally, which is also illegal. I was speaking to a bus driver the other day, he works 13 hour shifts with 1 hour lunch break, and if the bus is delayed due to traffic, that comes out of his lunch break. Pretty harsh and probably illegal. My point being I think a lot of companies out there, especially small ones, are not acting lawfully in this respect.

I wouldnt report them unless you are personally affected by it, not going to be of much benefit to anyone apart from the employees, but thats their problem to sort out
(edited 10 years ago)

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