Disciplinary whilst pregnant

[EJT91]

HELP!!

I received and email yesterday inviting me to a disciplinary hearing for gross misconduct. The letter states they have received an allegation (?!) that I am working for another company whilst contracted to them. There was no evidence attached for what was found in the investigation and the letter also states that if the allegations are upheld then I will receive a warning. It might be worth noting that I am 25 weeks pregnant. I haven’t slept a wink worrying about this or eaten. The only thing I can think is that my tax code has changed. My partner has innocently
put me on the payroll for his company to start transferring money to me to help while I am on maternity leave. This has changed my tax code. I do the invoicing on a Sunday afternoon after he leaves for work and it has absolutely no affect on my contracted job and is a completely separate role and industry to the one I am employed to do by them. I feel like this particular director has been gunning for me since I announced my
pregnancy. I am the first female in my role to have a baby and she hates the fact I am no longer able to fulfil my entire role, due to health and safety reasons as set out by occupational health. so it feels
like this is very much a targeted attack on me. I didn’t let them know about my extra income as it’s just a couple of hours a week, outside my working hours, so I didn’t realise I needed to advise them. I’m obviously going to apologise and explain I wasn’t aware etc, but has anyone got any advice? I feel sick to my stomach. I’ve never been in trouble with work before and have an excellent record. I’m barely off sick, even through pregnancy. I’m going to ask for evidence to be sent over to me today so I can prepare my case. I have a work contract for my “side role” which states my working hours and also the day I’m
contracted to work, so they will see it doesn’t clash with my main role. Any advice for going in for this would be great. I have major anxiety and as I’ve said, I’ve not really slept all night worrying they will sack me and I won’t get my maternity pay 😞

Please read other comments before jumping to conclusions. I’ve said on multiple occasions I won’t be naming anyone.

@EJT91 just to say good luck, I was treated very badly by a newish manger on returning to work after my 1st child which ended up in my leaving a job that I had been in and done very well for a number of years. Sometimes even other women really screw with those who are pregnant or new mums and I have a lot of respect for anyone brave can stand up to them when discriminatory practices are occurring.

You are entitled to have a second job or paid hobby, no company can stop you having that, but that isn't the right way to pay you.

Not what my contract says. Second jobs are definitely not allowed.

In that case the OP would have had to invoice her DP for the work and declare it as self employed earnings.

You can't just pay money out of a business without a paper trail, or if found out HMRC will have your guts for garters.

If he pays you via payroll for his company you won't be entitled to your statutory maternity pay, just something to bear in mind

Thank you. This is exactly right! People think this is a tax evasion but it isn’t. I genuinely work for him doing his admin 4 hours a week, as that’s all that’s required. He works stupidly long hours and doesn’t have time to do it himself. He would be paying someone anyway. I did it for nothing while he got his business off the ground, so now he can afford to pay me a few hours a week, he does. It’s that simple!

What. The. FUCK?

Do you claim any benefits Op?

OP should simply be a director, and declare dividends via a self assessment form, provided that holding a directorship isn't prohibited (it rarely is) this is the solution to legit income from husbands business.

OP, I don't know.enoigh about employment law o give proper advice.

But, whatever the outcome (written warning or nothing), in a few month's time you won't really care.

Likely your director doesnt like having had to restrict your role, and sees ypu taking on additional work elsewhere... eg "ridiculous, she doesn't do her full job here, but she can take on work for someone else". I'm not saying her opinion is legal, right or fair.

I really don't understand why people are so excited about the tax avoidance aspect. It's not some massively dodgy fiddle, it's standard practice. People have been putting their relatives on the books of their businesses literally for decades - I remember my very first employers doing it 40 years ago.

That wasn't aimed at you OP. But if you are going to claim this in your meeting, you will need to have evidence - they won't just take your word for it that some unnamed individuals have side gigs and haven't been disciplined. Which would involve either asking your colleagues to fess up, or naming names/screen shots of social media posts etc.

The onus is on you to prove this is pregnancy related, unfortunately. And if this whole process has been instigated independently of your manager, and it's been triggered by your change in tax code and HR initiated it, as I mentioned upthread, you won't have a leg to stand on. As a manager, my hands would be totally tied if HR informed me a member of my team had breached their contract and they had to follow a disciplinary process.

If your manager has had a hand in the process, however, and you have evidence of other things that have gone on, then of course you may be able to link the two things. But it will be important to understand the policy and process that is being followed here first before you claim pregnancy discrimination, especially if your manager has had nothing to do with this particular issue.

Agreed.

Many advisors would say to pay your partner for work they actually do at a reasonable rate for that work.

Keeps money in the family.

Now the knock on on this job is unfortunate but wouldn't be an issue if got permission in advance.

I am unclear how it affects maternity pay, but that doesn't make the whole thing dodgy. Just maybe needed researching before payments started.

This has nothing to do with being pregnant, OP. You have taken on a second job without informing your employer, which is presumably in breach of your terms and conditions. Please don't make it about your pregnancy or a manager being "out to get you", because you demean all women by reacting in that way.

Hi OP, I work in HR and this is good advice. Following written disciplinary processes offers protection for the employer so it's normal that they are going "by the book".

At the moment, all they know is that you've got a second job. They don't necessarily know who you are working for or what you are doing. It could also have implications on your employer's tax bill if your tax free allowance is being used up by working for your husband. Plus it is a well known tax dodge, so they aren't going to be best pleased.

However, if it offers you any consolation I'm almost certain in my company this would result in a formal written warning rather than dismissal if you hold your hands up, plead ignorance and offer to take yourself off the payroll at the other company. I would not go in all guns blazing about discrimination because your employer could easily turn round and say other employees haven't had their tax codes changed so they are unaware, they'll now do an audit but that wouldn't stop any action against you and it would escalate the situation.

Essentially, you've messed up here but I don't think it's worthy of being sacked and I'd be advising managers as such if you worked at my company.

Get clued up and read through all processes etc, be prepared for their questions but being honest that you screwed up, are now aware and will rectify it should see you right.

It will be for tax reasons - if he can pay her at a level below the tax threshold then as a couple they can take money out of the business tax free. That doesn’t work when you have another full time job though and I don’t know how it works with maternity pay.

The fact is you have breached your contract, so it’s very simple as far as they are concerned.
You don’t know what other colleagues’ contracts say so I would not be mentioning others with second jobs as a way of trying to absolve your contractual breach.

If your contract states you cannot work for anyone else then you are in breach of your contract

Its all in the detail of that

I really don't understand why people are so excited about the tax avoidance aspect. It's not some massively dodgy fiddle, it's standard practice. People have been putting their relatives on the books of their businesses literally for decades - I remember my very first employers doing it 40 years ago.

---

Because that's what got her caught out? She was trying to say they were trying to oust her because she was pregnant but actually she made a mistake by not telling her employer that she had a second job.

Maybe HMRC have tightened up the rules around employing family. Given the stress it is now causing OP you have to wonder if it was worth it.

What's worrying is that OP still isn't getting it and will go into the disciplinary using these same ridiculous arguments.

Talk to ACAS, read through info on disciplinary process so you can pick up anywhere where they haven’t followed process. Strongly suggest getting an employment solicitor to advise.

Get screenshots of everyone else running a side business now so you have the evidence just in case, don’t rely on them admitting they knew about the others.

Absolutely. You need to see what your contract has said and if being employed by another company isn't allowed then you are in breach of contract. However, surely it can be sorted if this was a genuine error/misunderstanding on your part.

Actually OP I would hammer home the point about multiple other individuals having second jobs if it’s widely known.

Not being allowed a second job is a common contractual requirement. Unfortunately not reading what’s in the contract you signed is on you. So you’re kind of at their mercy there as there’s not really any excuse.

However, if there are multiple individuals who are openly working in second jobs and no action has been taken, then it strengthens your case.

Is there any way of finding out what your friend’s tax code is? If there are others who have the same tax code but haven’t been disciplined, that’s direct proof of discrimination and needs to be raised.

I wouldn’t mention it as a side issue at the end. I would be actively including it as part of my defence. So fully admitting you are in the wrong and should have told them, but as there are so many others with second jobs, it led you to misunderstand. And if they do discipline you but take no action on anyone else, it’s proof that you have been discriminated against.

I think it’s an important issue to raise because otherwise you’re kind of at their mercy. You massively fucked up by not telling them, and as it’s a very common contractual condition, they might decide to throw the book at you. Pointing out the disparity in your treatment might give them pause for thought.

Good luck.

But it honestly does not matter why the husband put wife in payroll -to reduce tax or just as she is working and deserves paying.

The facts are she is doing 4 hours book keeping on a Saturday (see contract). That's all you say at the hearing.

The comment that it affects your employers tax bill is slightly misleading-all it affects is the split between what they pay the op of her gross pay and what they pay hmrc. They don't pay more overall. It doesn't affect their employers ni at all.

However, if it offers you any consolation I'm almost certain in my company this would result in a formal written warning rather than dismissal

They can’t dismiss as the invite letter hasn’t stated that. It says a warning, so that’s the maximum sanction that can be applied.

As an accountant I can't see where everyone is getting the tax fiddle thing from on this.

HMRC are aware of the OP's second employment, that is why her tax code changed - so she is paying tax and her DP is declaring the payment.

Its the fact that she is being paid correctly for the second Job that has made her primary employer aware and dropper her in the poop.

Its a contractural, not a tax issue.