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Court rules in favour of workers

18 Jun 2008

Court rules in favour of workers A court ruled on Friday (June 13th) that employers must pay workers minimum wage regardless of what tips they earn, it has been reported.

Students working in the service sector for bars, restaurants and clubs in order to support their studies could be interested to hear the High Court ruled to support national minimum wage legislation.

In a case regarding upmarket London restaurant and night club, Annabel's, the judge ruled that tips, gratuities, service or cover charges are not paid directly through the employer's payroll and can not be included in any minimal wage calculation.

Denise Gaston, of Her Majesty's Revenue and Customs (HMRC), welcomes the decision saying it was "good news" for bar and restaurant workers nationwide.

"Our priority is to ensure that all workers are paid at least the National 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," she added.

A spokesperson for the Department for Business said it is essential that all workers are received the pay they are entitled to and that everyone earns at least the minimum wage.

The national minimum wage – initially of £3.60 per hour – was introduced in the UK in 1999 and was strongly opposed by the Conservative Party.

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