| Industry News |
|
| News » Employment Law » Court in landmark minimum wage decision |
|
11/05/2009
Court in landmark minimum wage decision |
|
A restaurant in Westminster has been ordered to pay staff £125,000 in owed wages after losing a case in the court of appeal over the use of tips and gratuities to subsidise the minimum wage.
Mayfair-based Annabel's is facing the bill after the judgement went in favour of HM Revenue and Customs, meaning the institution has failed in its statutory duty to pay the full minimum wage.
The ruling may also mean that others who have had tips counted as part of their minimum wage could have reasons to make claims against their employers.
Those in such a situation may wish to consult a solicitor about the possibility that they can recoup unpaid wages.
One consequence of the case is that it may effectively bring forward the legal change that the government is already planning.
Last week details were published of plans to make the practice of subsidising wages through tips illegal in October this year.
Commenting on the move, employment minister Pat McFadden said: "We do not believe employers should be able to use tips meant as a bonus for staff to boost pay levels to the legal minimum."
Written by Pauline Adams
 |
| |
| Related Articles |
12/01/2010
Firm faces discrimination claims over redundancies
Fujitsu is facing claims that its redundancy policy has deliberately targeted people from minority groups.
|
12/01/2010
Retirement age law change planned
The current compulsory retirement age of 65 should be abolished, according to a senior member of the government.
|
07/01/2010
Employees 'should be treated reasonably' in snow
Employees have a right to be treated reasonably by their bosses as the winter weather hits Britain, the Chartered Institute of Chartered Institute of Personnel and Development (CIPD) has said.
|
05/01/2010
Taxi firm caught out over equal pay
A taxi firm has lost a legal case for sex discrimination after paying a female employee, whose husband also worked for the company.
|
05/01/2010
Action urged on age discrimination
More action is needed to ensure age discrimination legislation is enforced, it has been argued.
|
News Archive