To fire my friend

[nadgug]

Just that really. She came in to help me one day and then assumed she had a job to fit around her childcare (2 half days a week).
Firstly, I didn't want anyone doing half days, it's too hard to fit around other staff and if the other person is sick I have no cover. I didn't offer her a job, she'd just assumed, and quite frankly, she's lazy. She spent a lot of time on her phone which left me to run the shop alone (it's not something anyone should run on their own).
I made a job list so she knew what she had to do. She still had to be asked and I ended up doing 90% of it.
She also brought her child in at half term which was fine if she was in the "designated area", obviously this didn't happen so I've now put a stop to that anyway, it's far too dangerous.
If it was anyone else I'd have let them go on the spot, I don't know how to do this without harming the friendship. I can blame the boss but I'd have to replace her so can't say it's due to cutting down hours etc. I'm really stuck. She's also been telling people she's running it with me! I know I should just tell her she's a CF and to piss off but she was quite a good mate.
(Namechanged as it's probably outing but been here a long time)

You arent a wimp- youre kind. Which is a great quality.
However, this is business. Try to think of work as putting on a new identity if it helps. Kinda like how beyonce adopted the persona of sasha fierce to get the balls to perform?- do that.
Put on your business persona (choose a name!) and get it done. If it doesnt come naturally to you, this technique might help. Good luck!

I too was under the impression that being paid cash in hand and having to sort out your own tax and NI made you self employed.

I have no idea where you have the idea from that cash in hand is fine so long as the employees sort out their own tax and ni ? This is completely wrong. I suggest you go onto the HMRC website and pull up their employment status checker and follow the tick boxes. That will tell you if they're self employed or not - I suspect not. You have a duty to report income to HMRC as employees are assessed for UC and tax credits via your PAYE reporting. It could cost your employer fortunes in penalties and unpaid NIC if you get it wrong.

Cash in hand is legal but employing people who are working for you regularly as ‘employees’ as self-employed people is not legal. You urgently need to take advice on this. www.gov.uk/employment-status

Cash in hand is fine as long as employees are aware of paying their own NI and tax.

Not an area I am any kind of expert in but I didn't think that was the case. My understanding is that unless they are very clearly operating under a contract for service (i.e. self-employed) then employees will be assumed to be paid net of tax and NI with the responsibility resting with the employer to ensure those are paid. Ultimately it should be the employer (i.e. the owner of your shop) who is liable here but make sure you are not deliberately or inadvertently going to be the fall guy here.

Do you have any experience at all in running a successful business because you’ve clearly got a lot to learn about managing staff!

There’s lots of useful information online so you better get googling. Also, choose better friends, not CF’s.

@nadgug you aren't a shit manager, someone who was a good moral friend wouldn't have put you in this position. You are now faced with having to balance being a good manager be protecting a friendship. However, I don't think the friendship is really worth much, or rather your morals are misaligned as you seem to be the thoughtful caring type whereas she's the opposite.

@nadgug

Maybe spend a day writing contracts that state they are 'self employed' rules on sickness, holidays, practices, notice of leave, description of job role, introduction period,

Write Policies

You have to have a fire procedure, even if it's shout 'fire' and they know which doors to leave by and where to stand. They have to have one and sign it to say they have read it and date.

Most policy templates are online to steal, go to a big shops website they have to have there policies on there. Print off and use them as a guideline.

Policies like breaks, customer care, safeguarding of staff (aggressive customers)

OP, be prepared to learn on the grapevine (from her version of events) that you got rid of her because she was so much better than you that she was showing you up.

It does sound your friendship is doomed but I doubt you feel the same about her now anyway.

It will be a difficult conversation but it sounds like one to which you're reconciled.

@slashlover I really don't know. I don't deal with wages or contracts yet. It is something I am looking into. When scouring the internet it said that it's fine to pay employees like that but I need actual legal advice on that matter (well.. the boss does!)

@MimiLaRue brilliant idea! Usually Sasha fierce persona is my every day life and I'm annoying myself that I can't be cutthroat with this!

Oh my, how does this even happen? I couldn't imagine randomly turning up at my friend’s workplace 2 afternoons a week and working without being asked to/wages and hours agreed etc. How awful for you!!

Dont let her employment drag on ,it will only make it more difficult to get rid of her. Your job will be on the line if underperforming staff affect the business,and sorry yes I agree with the poster who said you are a poor manager.As a business owner myself I would be horrified if one of my managers employed a friend

contracts have been very loose and verbal up until now

So there are no contracts. This is illegal.
At the bare minimum, you should get signed letters from each worker stating that they are self-employed & responsible for their own tax & NI. You need to do that tomorrow. You also need to get onto the HMRC site as PP advised & follow their steps. You will also need to get documented procedures in place to prove H&S & other training requirements have been met.

I'm finding it hard to believe that you allowed your friend to rock up, assuming she has a job with you, & were unable to say "hoy, what are you doing here?" the first day she did so. Or did 90% of her work for her instead of telling her to do the job properly herself.

Your boss is skating on very thin ice & you are not helping. He needs to register as an employer, or get some cast iron procedures & freelance contracts signed up - www.freeagent.com/guides/payroll/first-employee/

@ArranUpsideDown haha I'm ok with that, that would be quite hilarious to hear!

www.gov.uk/employing-staff

Just say, "sorry there are no hours for you this week", like a pp said. Its perfect.

You just need to be honest, anything else opens you up to problems.

There was never a part time position, she assumed, you felt awkward, this cant carry on, she mustn’t come in any more. Then you’ll have to take any repercussions on the chin.

OP, please take action quickly. The longer she stays, the harder it will be to get rid of her. She is taking the piss, you know this and it’s not the action of a friend.

Thank you all for the advice.
My action plan is to get contracts finalise ASAP.
Get the boss to sort out his wage situation and contact HMRC.
Put in place health and safety and fire plan.
Take copies of everyone's proof of right to work.
Inform everyone of probation period.
Sack friend with excuse thar contract states full time working and availability and no half days.
This is a mess, what have I got myself into with this business. I want to fix it and see it through, so this advice has been really helpful

Also, as a manager you are going to have difficult conversations and make hard decisions as part of your role. It’s just unfortunate that your first one is involving your friend.

@Skittlesss it would be no problem with anyone else. I really am fairly hard headed and cutthroat the rest of the time. My husband is despairing at my softness in this situation!

Before you start writing policies etc the first thing you need to do is ensure your responsibilities are properly agreed in writing with the owner. It's all very well being told you are the manager but do you have written authorisation to hire and fire, to pay staff, to write formal policies? Take this situation as an example. Could your boss argue that he never knew you'd employed your friend, didn't know you were taking cash out the till to pay her? If there are no records she/he could land you right in the shit to cover his own back.

Also, deeming someone self-employed is not as simple as agreeing they are self-employed, even if it's signed off in writing by both parties. There are a variety of tests that can and will be applied to determine if someone is actually self-employed such as the degree of control and supervision, flexibility of hours, whether you can substitute someone in your place, who owns the equipment/premises being used etc. I suspect it would be highly unlikely that a shop worker would ever be considered self-employed, except in very specific cases such as hairdressers who rent a chair in a salon.

She's been in 3 times. Don't wave any kind of contract near her. Just say that the arrangement isn't working and will therefore end with immediate effect.

And then for God's sake get yourself on an acas course and learn how to be compliant with employment law.

You need some basic policies and procedures along with payslips, contracts etc or you're wide open to breaches of all sorts. If I were your boss I'd seek advice from an hr specialist ASAP.

Hi Pamela, really sorry but my boss had a word with me this morning. He isn't happy I have hired a friend, and not happy I have let you work part time. He said the shop needs someone full time and we need to employ them in the 'legal' way of advertising the job. I'm so sorry!

Don’t send this. Why would you apologise twice and admit you made a mistake and have been reprimanded for it by your boss? And definitely don’t put speech marks around the word legal!