The Student Room Group

Is this illegal at work?

I am 19 and work in a cafe. I am paid what works out as 60-70p below minimum wage per hour depending on how many tips I get, usually paid £4.10- £4.20 per hour. I have never received a wage slip either or any kind of notification of whether i'm being taxed and how much i'm earning. I'm aware this is possibly illegal and am wondering what I should do about it? I'm reluctant to question my boss about it.
Reply 1
1. Are you paid cash in hand or direct into your account?
2. It is illegal for your employer to pay you below the min wag for your age - as far as I know.
3. You should get a set wage irrespective of your tips. You shouldn't get paid in tips :s - Unless it's commission based which must be difficult to implement in a cafe.
4. You should get a pay slip everytime your paid - if everything is above board. Your company may have them stored..

If you are not paid into your account.. then I doubt everything is above board and companies tend to use that as an excuse to pay under the legal amount
Reply 2
i'm paid cash in hand, weekly, and usually get around £3 tips as extra. So perhaps they keep them stored separately and just don't give them to us? So I should ask of their whereabouts?
Yeah. It's illegal for your employer to not pay you minimum wage, secondly, you should have info on taxes and the like.

Bring it up with your boss, if he gets angry then quit. You're being screwed over and you need a better job!
Reply 4
Yes, that is illegal, and you should have tax information. Trading standards? You are young, and he's taking your eyes and going back for the sockets.
Reply 5
Some places allow you to keep your tips, some share them out in itnervals to each member, and some dont let you keep them, Find out what it is.
But definitely pull him up about the wage.. that IS illegal, and pretty sure somewhere your allowed to claim for what you should of been paid.

Being paid cash is usually a way for them to hide things such as this.. take it up with management.

Is it a kind of chain of cafe's? .. or a self employed type thing?
Reply 6
The weekly threshold for National Insurance contributions is £108 a week.

The annual tax free threshold before you pay income tax is £6470 a year

Your tax code should be 647L

Yes, your cafe is breaking the law as you MUST be paid the minimum wage of 4.83 per hour BEFORE any tips or commision is added
Reply 7
F11122
I am 19 and work in a cafe. I am paid what works out as 60-70p below minimum wage per hour depending on how many tips I get, usually paid £4.10- £4.20 per hour. I have never received a wage slip either or any kind of notification of whether i'm being taxed and how much i'm earning. I'm aware this is possibly illegal and am wondering what I should do about it? I'm reluctant to question my boss about it.

I don't think so if your paid cash in hand. Are you under contract?
Many restaurants and cafe's pay a low wage and the rest is made up in tips.
Reply 8
F11122
i'm paid cash in hand, weekly, and usually get around £3 tips as extra. So perhaps they keep them stored separately and just don't give them to us? So I should ask of their whereabouts?


In that case what your employer is doing is illegal as all money you earn has to go through the to the taxman who then pays it into your account. Thus, you will not have a payslip.


Personally, when I was fresh from school I wouldn't work for less than 5.50 an hour. If you're content with your wage you can stick with it. If not, you could ask for more and as you genuinely didn't know that the job was illegal you may have a case..
Reply 9
You're saving money - no tax and no N.I. contributions. At fulltime min wage you earn around 700 quid a month. 8409 a year. 2000 taxable, at 400 quid a year. Probably over fifty for N.I. again depending on your pay. Near 500 a year. At FT you'd get around 1152 more a year, 24 a week. I wouldn't worry about it - it is a cafe it really doesn't matter whether they do it 'properly' or not in terms of how you are affected so just leave if you don't like it. You aren't the one who gets in trouble if they do get caught (which they won't because the government understands it needs to work like this). What they are not going to do is change their business practice and increase their costs for your benefit.

Everyone does this - cafes, pubs, most of the building trade. The reality is doing these things legally costs so much money nowadays that it is better for the business to take this small risk. The government rapes small businesses especially for every penny they can get - because they can't complain and they're still taxing 'the rich'. Also those kind of businesses to an extent rely upon students & young people, itinerant workers etc to function properly. Those people need the flexibility just as much as the business does.

EDIT: Didn't think about the 4.83 figure so I'm gonna change the numbers now. Sorry 36 hours awake here lol. The new figures show you making more money every year. Hope the editing hasn't made that all a nightmare - essentially the first lot was complete crap.
Reply 10
Futurdoc
In that case what your employer is doing is illegal as all money you earn has to go through the to the taxman who then pays it into your account. Thus, you will not have a payslip.


Personally, when I was fresh from school I wouldn't work for less than 5.50 an hour. If you're content with your wage you can stick with it. If not, you could ask for more and as you genuinely didn't know that the job was illegal you may have a case..


No contract. Hundreds of other young lads who will do the job - and he demands more cash?

Quick way to get sacked.
Reply 11
tehjonny
No contract. Hundreds of other young lads who will do the job - and he demands more cash?

Quick way to get sacked.


Yer I hear that. I said he may have a case. His boss may like the job he does and may not wish to release him. But I suggest he only does this if he is not content with his wage atm.
Tips can form part of the slaray. They belong to the company. Their should be a base rate of pay that is above or equal to the minimum wage.

Don't forget about tax and insurance. If you are being paid cash in hand tha pay you receive may already be deducted of tax and insurance.
I didn't realise it was possible to be legally paid in cash?
I thought it has to be paid properly to a bank account with the appropriate tax codes?

Either way, OP should report his employer to trading standards and the inland revenue, for paying below the minimum wage and not paying taxes. If other staff confirm as correct the amount you're being paid, you will probably get the difference between what you should have been earning and what you've earned for the entire time you've worked there. I got one of my friends to do this recently and one of the employees at the coffee place he worked at got the equivalent of a year's salary.

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