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20-Jun-08 11:30 [Pay and Reward]
High court passes ruling on minimum wage A high court ruling has supported national minimum wage legislation stating that tips do not count towards pay.
The case was brought by HM Revenue & Customs (HMRC) against Anabel's club and restaurant and found that employers have to pay their staff at least the national minimum wage regardless of any tips, gratuities, service or cover charges as long as tips are not paid directly through the employer payroll.
HMRC argued that payment through an independent tips distribution scheme, known as a tronc, does not count towards the minimum wage.
"We are very pleased that the court has recognised HMRC's commitment to ensuring that tips are correctly and fairly distributed to the people who earn them," commented Denise Gaston of HMRC.
She added that the verdict was a good result for bar and restaurant workers in the UK.
The current rate of minimum wage is £5.52 per hour for workers over 22 years, which was introduced in October last year.
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