Menu
07/05/2009
HMRC Wins Minimum Wage Court Battle
Bar and restaurant workers have today been given a helping hand by the Court of Appeal in their fight for fair pay.
The court ruled in HM Revenue & Customs' favour by upholding current national minimum wage legislation relating to tips, gratuities and discretionary service charges in the case of Annabel's restaurant and night club and others.
The judgment confirmed that employers must pay their staff at least the national minimum wage regardless of any tips, gratuities, service charges or cover charges, providing they are not paid by the employer to workers through the employer's payroll. This means that Annabel's and others must now pay over £125,000 in arrears to its workers.
HMRC had argued that payment via a 'tronc' (an independent distribution scheme) does not count towards the national minimum wage.
The Court determined that where restaurant or bar service charges are paid by the customer to the employer, but are then paid into a 'troncmaster's' bank account for distribution in accordance with a 'tronc' scheme agreed between the troncmaster and workers, the sums distributed to workers are not "paid by the employer" and so cannot be included in national minimum wage pay.
Rt Hon Stephen Timms, Financial Secretary to the Treasury said: "The Government's priority is to ensure that all workers are paid at least the national minimum wage.
"I am extremely pleased that the court has recognised HMRC's commitment to ensuring that tips are correctly and fairly distributed to the people who earn them. This is good news for bar and restaurant workers across the UK."
HMRC vigorously enforces the minimum wage across all employment sectors including the catering and hospitality industry. Anyone who thinks they are not being paid national minimum wage rates should contact the confidential NMW Helpline on 0845 6000 678.
(JM/BMcC)
The court ruled in HM Revenue & Customs' favour by upholding current national minimum wage legislation relating to tips, gratuities and discretionary service charges in the case of Annabel's restaurant and night club and others.
The judgment confirmed that employers must pay their staff at least the national minimum wage regardless of any tips, gratuities, service charges or cover charges, providing they are not paid by the employer to workers through the employer's payroll. This means that Annabel's and others must now pay over £125,000 in arrears to its workers.
HMRC had argued that payment via a 'tronc' (an independent distribution scheme) does not count towards the national minimum wage.
The Court determined that where restaurant or bar service charges are paid by the customer to the employer, but are then paid into a 'troncmaster's' bank account for distribution in accordance with a 'tronc' scheme agreed between the troncmaster and workers, the sums distributed to workers are not "paid by the employer" and so cannot be included in national minimum wage pay.
Rt Hon Stephen Timms, Financial Secretary to the Treasury said: "The Government's priority is to ensure that all workers are paid at least the national minimum wage.
"I am extremely pleased that the court has recognised HMRC's commitment to ensuring that tips are correctly and fairly distributed to the people who earn them. This is good news for bar and restaurant workers across the UK."
HMRC vigorously enforces the minimum wage across all employment sectors including the catering and hospitality industry. Anyone who thinks they are not being paid national minimum wage rates should contact the confidential NMW Helpline on 0845 6000 678.
(JM/BMcC)
Related UK National News Stories
Click here for the latest headlines.
01 September 2011
Commission On Minimum Wage Visit
Two Low Pay Commissioners are to visit London next week on a fact-finding visit about the National Minimum Wage. The visit is one of a number of planned trips the Low Pay Commission is making around the UK during 2011 to "gather information on how the minimum wage is operating".
Commission On Minimum Wage Visit
Two Low Pay Commissioners are to visit London next week on a fact-finding visit about the National Minimum Wage. The visit is one of a number of planned trips the Low Pay Commission is making around the UK during 2011 to "gather information on how the minimum wage is operating".
19 May 2014
Labour Pledge To Tackle Scandal Of Low Pay
A Labour government would "raise the value and restore the ambition of the National Minimum Wage," Ed Miliband has said at the launch of an independent report on low pay.
Labour Pledge To Tackle Scandal Of Low Pay
A Labour government would "raise the value and restore the ambition of the National Minimum Wage," Ed Miliband has said at the launch of an independent report on low pay.
15 June 2009
Low Pay Commission To Consider Minimum Wage For Apprentices
For the first time the Low Pay Commission has been asked to consider introducing a new national minimum wage for apprentices. The request comes as the Government today publishes the new terms of reference for the Low Pay Commission - the independent body which advises the Government on the national minimum wage.
Low Pay Commission To Consider Minimum Wage For Apprentices
For the first time the Low Pay Commission has been asked to consider introducing a new national minimum wage for apprentices. The request comes as the Government today publishes the new terms of reference for the Low Pay Commission - the independent body which advises the Government on the national minimum wage.
12 May 2009
Minimum Wage Increases To £5.80 Per Hour
The national minimum wage is to increase by 7p to £5.80 per hour, the Government has announced today. The rate for 18 to 21-year-olds is to rise by 6p to £4.83, while 16 and 17-year-olds will increase by 4p to £3.57.
Minimum Wage Increases To £5.80 Per Hour
The national minimum wage is to increase by 7p to £5.80 per hour, the Government has announced today. The rate for 18 to 21-year-olds is to rise by 6p to £4.83, while 16 and 17-year-olds will increase by 4p to £3.57.
09 January 2007
Fines for under minimum wage employers
Employers who refuse to pay the minimum wage could face a £200 fine for every worker underpaid. Employers already have to pay back arrears they owe to the worker and those who refuse to pay up will be penalised. Trade and Industry Secretary Alistair Darling said: "Workers have the right to a decent minimum wage and we are determined they get it.
Fines for under minimum wage employers
Employers who refuse to pay the minimum wage could face a £200 fine for every worker underpaid. Employers already have to pay back arrears they owe to the worker and those who refuse to pay up will be penalised. Trade and Industry Secretary Alistair Darling said: "Workers have the right to a decent minimum wage and we are determined they get it.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
