Daler-Rowney Ltd v HM Revenue and Customs: EAT 25 Jun 2014

EAT Race Discrimination : Indirect – National Minimum Wage: An employer appealed a Notice requiring it to make payments of arrears of wages to 26 students, on the basis they had not received the national minimum wage (‘NMW’), and a further penalty. It contended that the students fell within an exemption from the NMW, provided for by regulation 12(8) of the NMW Regulations:
‘A worker who is undertaking a higher education course and before the course ends is required, as part of that course to attend a period of work experience not exceeding one year does not qualify for the National Minimum Wage in respect of work done for his employer as part of that course’.
A higher education course was so defined as to relate only to courses undertaken within the UK, and thus disproportionately excluded EU and foreign students who were not taking such courses from having as favourable an opportunity of gaining work experience. The ET decided that this was (indirectly) discriminatory, but justified as a proportionate means of preventing abuse of the NMW system, which was a legitimate aim. It was held entitled on appeal to reach this conclusion, and several other grounds of appeal were also rejected.

Langstaff J P
[2014] UKEAT 0273 – 13 – 2506
Bailii
England and Wales

Employment, Discrimination

Updated: 05 December 2021; Ref: scu.527199