Leisure Employment Services Ltd v Revenue and Customs - benefits in kind as part of Minimum Wage
The Court of Appeal has upheld an EAT ruling (HMRC v Leisure Employment Services Ltd EAT [2006] ICR 1094) to the effect that Butlins Holiday companies were acting unlawfully in charging staff for the cost of heat and light in living accommodation as part of their pay package when the result was that cash wages fell below the National Minimum Wage. Butlins were entitled to deduct the statutorily permitted credit for providing free accommodation (£3.90 per day from 1.10.2005) but that was all.
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