Workers win 1m refund as a result of minimum wage action - 20 February 2007

Holiday camp workers may now be able to receive a refund of monies deducted allegedly unfairly by well known nationwide operators.

The employer deducted a monthly sum from wages to account for heating and utility bills but this meant that the wages for many staff dipped below the minimum level protected by statute.

A number of test cases were brought by the National Minimum Wage Compliance Unit and the Employment Appeals Tribunal has now ruled in their favour. This means that the monies will need to be repaid to workers who were employed and affected by this policy in 2004/2005.

Denise Gaston, National Minimum Wage Business Manager at HM Revenue & Customs, said:

"This ruling is good news for all workers living in accommodation provided by their employer. It reinforces the fact that deductions for things like heating and lighting must not take workers' pay below their legal entitlement."

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