Britain’s beleaguered bosses claim more of their staff are fiddling expenses to line their own pockets as the credit-crunch bites.  

Legal experts advising employers say they’ve seen a 36 per cent rise in queries about fraudulent expenses in the past three months.  

Rising prices in the shops and at the petrol pumps have left many workers feeling the pinch – so more of them are topping up their salaries by bumping up their claims.  

Now employers are hitting back by checking expenses more carefully, and disciplining or even sacking workers whose outgoings and claims just don’t add up. 

ELAS are specialists in employment law and can help employers with advice on UK employment law, disciplinaries and legal procedures. 

Peter Mooney, Head of Consultancy at Employment Law Advisory Services, confirms that they have seen a sharp increase in the number of employers asking for help over expenses issues.  

He said: “When times get tougher, employers scrutinise expenditure across the board. While they can often make economies in areas such as heating and lighting overheads, staff costs can be harder to control. 

“We’ve recorded a 36 per cent increase in enquries from employers concerned about expenses claims made by their staff. Much of this can be accounted for by rising inflation, but there are some workers seeking to boost their take-home pay by making inflated or even fraudulent claims.  

“In those cases, we advise employers on the best ways to deal with the problem. Disciplinary measures can be taken, and in certain cases this will mean staff being sacked or even prosecuted. It all depends on the nature of their contract, and the terms and conditions of their employment.  

Expenses cheats who have been caught out this year include: 

·          Oscar-winning actor Nicholas Cage, who was forced to pay back £650,00 in back taxes and penalties to the US Internal Revenue Service after he was accused of wrongly writing off almost £1.9 million in personal expenses 

·          MEP Giles Chichester, who had to resign as leader of the Conservatives in Europe after it was revealed he had over-claimed for almost half-a-million pounds over a period of 12 years 

·          Plumbers employed by Edinburgh City Council, who fiddled their overtime claims by stating they worked four or five times longer than they actually had.   

Peter Mooney added: “As we’ve seen, it’s becoming a real problem for managers and one that seems likely to continue for the foreseeable future. The best employers make sure their staff clearly understand what they can and can’t claim. ”  

Employment Law Advisory Services, based in Salford in Greater Manchester, has been providing expert guidance on all aspects of employment law since 1995. 

For more information about this issue or any other employment law matter, please call ELAS on 0161 785 2000

Visit www.employment-law.uk.com for more information.

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