UK Can a worker offer to work for less than the minimum wage that they are entitled to?
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bklynboy
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Not really accounting related but yes it should be refused as this is a law companies must abide by. There are severe penalties if companies knowingly violate this. That said they can be paid in other forms of compensation such as stock (common in start ups where base pay is low but they get stock in the company).
J
John Baker
I know of many companies that actually do this and they are creative beyond belief.
Simple jobs that are not considered company jobs in the sense, usually fall into this category.
For example, let's say every morning at about 5am, an 18 wheeler backs up of company's
dock and needs unloading. A group of men gathers every morning, Monday through Friday,
and waits to be hired on the spot to unload the truck. These men are paid in cash and are
thought of as Independent Contractors. They're given cash on the spot and sign a receipt
identifying some sort of company name. Rarely are these people given anything to file later
on for tax purposes. They're literally millions of people who perform this kind of work,
considered under the table or some other calling. Is it legal? Depends on who you ask and
for what reasons.
As blkyunboy stated, be careful advising an enterprise to do this - below mim wage stuff.
On the other hand, as a bookkeeper/accountant, cover yourself with all the appropriate
paperwork and audit trails to show your compliance with law, and let MANAGEMENT'S
DECISIONS, NOT YOURS, be the ones to explain.
Simple jobs that are not considered company jobs in the sense, usually fall into this category.
For example, let's say every morning at about 5am, an 18 wheeler backs up of company's
dock and needs unloading. A group of men gathers every morning, Monday through Friday,
and waits to be hired on the spot to unload the truck. These men are paid in cash and are
thought of as Independent Contractors. They're given cash on the spot and sign a receipt
identifying some sort of company name. Rarely are these people given anything to file later
on for tax purposes. They're literally millions of people who perform this kind of work,
considered under the table or some other calling. Is it legal? Depends on who you ask and
for what reasons.
As blkyunboy stated, be careful advising an enterprise to do this - below mim wage stuff.
On the other hand, as a bookkeeper/accountant, cover yourself with all the appropriate
paperwork and audit trails to show your compliance with law, and let MANAGEMENT'S
DECISIONS, NOT YOURS, be the ones to explain.