The company appealed a finding that it had been paying workers at less than the minimum hourly rate. Its workers resided at their places of work, and deductions were made toward the cost of providing accomodation etc. The company claimed that the charge for heating fell within its provision of accomodation.
Held: It was a condition of the minimum wage that people should be paid in money not in kind, and employers should not be allowed compulsory deductions from wages. The payments toward heating were accomodation charges since they were required to be made as part of payment for that accomodation. The company’s suggestion that they received the money in trust toward discharge of their obligtions to pay the utility bills did not apply since they were free to use the money for other purposes.
Buxton LJ spoke about the possibilities of abuse and said: ‘as the President of the Employment Appeal Tribunal Elias J will have had well in mind, workers who have to seek the protection of the minimum wage provisions are likely to be in the less advantaged areas of the workforce, possibly with little job security, and unlikely to have strong trade union representation. Broad but simple rules, not leading to elaborate arguments of law when those rules have to be enforced, are likely to be the protection for them that the legislator has thought necessary.’
Judges:
Buxton LJ, Smith LJ, Wilson LJ
Citations:
[2007] EWCA Civ 92, Times 07-Mar-2007
Links:
Statutes:
National Minimum Wage Act 1998, National Minimum Wage Regulations 1999
Jurisdiction:
England and Wales
Citing:
Appeal from – Commissioners of Revenue and Customs v Leisure Employment Services Limited EAT 28-Mar-2006
The defendant employed seasonal workers. They deducted from their salaries before payment, fees for accomodation provided.
Held: The deductions reduced the payments below the national minimum wage and were unlawful.
Elis J said: ‘I take . .
Cited – Barclays Bank Ltd v Quistclose Investments Ltd; etc HL 31-Oct-1968
R Ltd were in serious financial difficulties. The company’s overdraft with the appellant bank was almost twice its permitted limit. The company sought a loan of 1 million pounds from a financier, who was willing to lend the company that sum provided . .
Cited by:
Cited – Revenue and Customs v Lorne Stewart Plc (National Minimum Wage) EAT 13-Nov-2014
EAT National Minimum Wage – Lorne Stewart paid for employees to attend courses on condition they signed an agreement to repay all or part of the cost of the course if they left within two years and providing for . .
Lists of cited by and citing cases may be incomplete.
Employment
Updated: 09 July 2022; Ref: scu.248839