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National Minimum Wage Ruling

Friday 13 June turned out to be a good day for all the UK’s bar and restaurant workers.  An employment tribunal ruled in HMRC’s favour by supporting current NMW legislation relating to tips.

 

The decision in the case means that an employer has to pay its staff at least the NMW regardless of any tips, service charges or gratuities so long as the tips etc are not paid directly through the payroll.  HMRC have been especially keen to support enforcement of the NMW legislation over recent months and an increasing number of cases are reaching the courts.  The current rates are £5.52 per hour for workers aged 22 and over, £4.60 for workers aged between 18 and 21 and £3.40 for workers under 18.