Terms & Conditions

[Anonymous]

I have a customer who works at one hotel and stays at another. The hotels are in the same Group, but they are not a limited company. Originally, we did not pay HB as we did not think there was a liability to pay rent. We are now paying HB because the hotel group is not a limited company. However, we are still in two minds over this!

The situation is as follows :

The hotel has sent in a letter clearly stating that the customer is not liable for rent, that he is a guest in the hotel on a temporary basis, that the accommodation is not connected with his employment, and they invoice him. The invoice is from the hotel he works at, not the one he stays at.

The customer states that there are designated staff areas and guest areas, and there is a locked door between them, with a sign saying that the door should remain locked to prevent guests gaining access. He states this to prove that he is not a guest of the hotel.

The rent/charge/whatever you want to call it is deducted straight from his wages, so no money actually changes hands. He says he is “living in, and the rent was deducted as hours taken at source from my total hours worked each week, in this way no actual money changed hands and I was in fact paid the net amount of hours following reductions for rent.”

There doesn’t appear to be any change in this arrangement despite seasonal changes in working patterns.

Is the customer eligible for Housing Benefit? On one hand, he does have to pay something for his rent, whatever the hoteliers call it; but likewise he is living in staff accommodation, the landlords state there is no liability, and it is not tied accommodation, but no money changes hands.

It’s all very confusing, and I’ve a sneaking suspicion I’m digging myself a hole with it! 😯 ❓

[andyrichards]

Short answer, I think he is liable for rent and his earnings for HB purposes include the amounts deducted for rent.

[Anonymous]

Hmmm…nice one. Short and sweet, just like me! 😉

We don’t actually have evidence of the rent being deducted from the wages, so either he’s getting a payslip for, say, £150 but only receiving £65, or the ‘rent’ is deducted [i:e12f2327bb]before[/i:e12f2327bb] the payslip is calculated, so he receives the net figure on the payslip, but has actually earned that [i:e12f2327bb]plus[/i:e12f2327bb] his rent. Which suggests rather imaginative accounting!

[markp]

Does your claimant have to take the accommodation as a condition of his employment? It sounds as though that may be the case so should you be paying HB? By statitng he’s not a guest, he has dug himself a hole from which he may find it very difficult to escape.

Just a thought.

Do I know what I'm doing? The jury's out on that........................

[Anonymous]

No, he doesn’t have to live there to work there, but he’s only living there [i:2d0a974608]because[/i:2d0a974608] he works there, is the nearest I can figure. The hotel have said it is temporary until he finds somewhere else, but he lived at another of their hotels for a while, so I’m not sure how temporary this arrangement is.

[markp]

I suspect it is the case that it’s a condition of employment but I don’t know how you’d prove it. Insufficient evidence to refer to fraud (in my view) so you’d not be able to interview under caution although I suspect there may be some collusion in this case. If you were to refuse this under those grounds I’d be none too pleased, as an appeals officer to receive the inevitable appeal. I think that I would, however, interview the claimant and try and gauge the situation.

Just glad it’s not mine!!!!

Do I know what I'm doing? The jury's out on that........................

[Anonymous]

The plot thickens 😕

The hotel he stays at is an annexe to the hotel he works at. He is now the only resident at the hotel, which is causing problems for the hotel group. The hotel he stays at is a summer hotel only (it has no heating apparently!) and only open May to October, then over Christmas, then closed again. Rent is not deducted from his wages, and his wages have now dropped so they no longer meet his room charge anyway. There are no cooking facilities in his room, so we don’t know how he is eating unless it is eating out. There is no bar, no restaurant, nothing at this hotel but rooms for guests. And he now has a second full-time job which is not at the hotel. The hotel want him out as he shouldn’t be there; he has been offered a flat by Housing Advice but he didn’t like it so they are looking for another one for him!

And they are still adamant that he is a guest and not renting.

I think, after speaking to the manager, that they are quite desperate to get shot of him.

Bang goes the idea that ‘phoning the hotel would make things a little clearer! 😯

[markp]

Definitely glad it’s not mine!!

Do I know what I'm doing? The jury's out on that........................

[Anonymous]

I wish it wasn’t mine either!!!

Of course, I could just disallow it and let him appeal and see what happens 😉

[Author]

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