Hi

My client received sick pay during a period of sickness and claimed HB. When she returned to work her HB stopped and she received an award of zero HB. Two days ago she told me that her union won a dispute and forced her employer to pay her full wages for that period. My client showed me a wage slip with a large payment as a lump.

How would this payment be treated? I flicked, perhaps too quickly, the HB handbook of the DWP. I found several examples of arrears but not this.

Is it treated as capital? Or earning? And, if it's capital, is my client under any duty to inform HB, considering that she has received it now?

My client is very worried about being accused of committing fraud, but she is also very worried about creating unnecessary disputes with the LA.

Thanks for any help

What was the nature of the dispute? Has her employment with the employer ended? Most compensation payments at the end of a period of employment are treated as earnings, including pay in lieu of notice and industrial tribunal awards for unfair dismissal, plus negotiated settlements of Tribunal claims.

No, her employment didn't end.
She was paid her full wage for this period and she is continuing working for the same company, in the same role. She told me however that now she is paid less. Perhaps I need to ask more details from my client, but my urgent problem is that she wants to know if she has to inform the LA or not; if I am not sure about the nature of this payment I cannot advise her one way or the other.

If in doubt, my view would be tell them and let them sort it out - though you risk them getting it wrong, of course...

Better to do this than risk not telling them and them finding out later and lumbering her with an overpayment.

Ariadne
thank you for your advice, I will pass it to my client.