National Minimum Wage ruling

By BigHospitality Writer

- Last updated on GMT

Related tags: Employment

A Central London Employment Tribunal has ruled that money paid to employees through a separate tronc payroll does count as earnings that can be used to make up restaurant employees' pay to the National Minimum Wage

Vantis tax advisers instructed David Griffiths-Jones QC to represent its client, an unnamed "high profile group of London businesses". HM Revenue & Customs had claimed that employees who were paid £3 to £4 an hour, with additional monies from the tronc, had not received their NMW entitlement from 2000 to 2003.

Peter Davies, Enquiries Manager at Vantis and ex-taxman, proclaimed the judgement "a victory for common sense."

"It was a classic case of arguing form over substance," he added, "to suggest an employee earning enough to pay 40 per cent tax had not received Minimum Wage and was being exploited because a tronc was in place. Innocent businesses have been put through months of stress and anxiety, not to mention great financial cost, because of the refusal by HMRC to recognise the reality of the situation."

Related topics: Legislation

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