‘Truly regressive’

Employers in Northern Ireland have been instructed by the department of communities to act as benefit debt collectors with the power to deduct up to 40 per cent of people’s net earnings, Unite has learned.

A letter from the department of communities in Northern Ireland to employers, which has been obtained by Unite, states that money owed due to the overpayment of benefits should clawed back before the debtor receives their wage.

If employers do not comply with the demand to enforce repayments for staff who are unable to agree an independent schedule with social security they are liable for a ÂŁ1000 fine, the letter said.

The implications for low income households that have been overpaid benefits or are paying back emergency social fund loans are severe, as government guidance on the matter allows repayments of up to 40 per cent of net earnings. Employers will also be entitled to charge a ÂŁ1 administration fee for every deduction.

Disturbing development

Unite Community coordinator, Albert Hewitt, said the move was a disturbing development that would set workers and bosses against each other, adding that the union plans to take action against their implementation.

“Workers can have benefit overpayments through no fault of their own, for example from administrative error, while those unable to agree a repayment scheme with social security are likely to be in very challenging circumstances – yet they will be subjected to punitive deductions,” Hewitt said.

“Unlike social security repayment schedules, under this mechanism there is no allowance for the very real financial pressures facing households in poverty. This proposal is likely to pit low-paid workers against their employers and may offer a means for exploitative bosses to target particular workers for more severe deductions.”

Hewitt pointed that as well as having the potential to be used for discrimination, the pay packet deductions could push people out of legitimate work.

He said, “This measure will impact most on those who have only just returned to work and threatens to push many into the black economy where they will lack the range of legal protections and rights. It is truly regressive.”

Head of Unite Community, Liane Groves, said the measures were a breach of the relationship between employers and employees and should be shut down immediately.

“Essentially the government is giving employers the discretion to have enormous power over the personal finances of their staff. It’s intrusive and means people’s private financial matters are open to their employer to scrutinise and interfere with,” Groves said.

“It seems that punishing people with overly complicated and draconian reforms to the welfare system is not enough. Now they have the added pressure of worrying whether their boss can take chunks out of their pay packet.”

She added, “It’s a horrible situation for anyone to be in and is wide open to abuse. Who’s to say that a rogue employer won’t use this power to discriminate against a staff member they don’t like? The Northern Irish government needs to abandon this move before it turns into a serious scandal.”