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HMRC v Leisure Employment Services Ltd - Minimum wage where heat and light cost deducted from wages [2006] EAT

The EAT has ruled that Butlins Holiday companies were acting unawfully in charging staff for the cost of heat and light in their accommodation as part of their pay package when the result was that wages the staff actually received fell below the National Minimum Wage. Butlins were entitled to a credit of up to £3.50 per day (since Oct 2005, £3.90) for providing free accommodation (under reg 36 of the 1999 NMW regulations) but that was all.

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