I found that some of the elves have given me defective reports. They have been disciplined (flogged while hung by the thumbs from the rigging) and serve as an example to the others. Any further false reports will have the reporter(s) keelhauled. Keelhauling is a harsh punishment you will say, but remember that this is the Arctic Ocean and a harsh environment.

Old Santa is not one of those nicey-nicey employers. Besides, where's an elf going to get a job in this economy? Hogwarts isn't hiring and scraping for one's self in the countryside isn't exactly a flat in Soho or even in Glasgow.