Defendant paid staff less than national minimum wage and topped up basic wages to MW through a troncmaster system (all tips were paced in a tronc and these were then distributed by a troncmaster).
CA found against Defendant Reg. 30 of NMW Regulations 1999 is only concerned with money paid by the employer to the worker.
It said that as soon as the employers transferred the tips to the troncmasters' bank accounts, the money was held on trust for the employees and the employers no longer retained any legal or beneficial interest in it.
The troncmasters acted independently and the money was not "paid by the employer", so could not count towards national minimum wage liability.
NB Dept BERR claims that as of 1st October 2009 service charges, cover charges, tips and gratuities can no longer be used to make up NMW pay. See reg. 31(1)(e) NMW Regulations 1999.
This case is still useful, as it highlights that only money paid by the employer to the waiter can go towards calculating minimum wage, and not that paid by a troncmaster.
Labour Law notes fully updated for recent exams at Oxford and Cambridge...
Ask questions 🙋 Get answers 📔 It's simple 👁️👄👁️
Our AI is educated by the highest scoring students across all subjects and schools. Join hundreds of your peers today.
Get StartedThese product samples contain the same concepts we cover in this case.
Labour Law | Personal Scope Of Labour Law Notes (36 pages) |
Employment Law | Recruitment Issues And Employment Contracts Notes (27 pages) |
Labour Law | The Employment Relationship Notes (71 pages) |