Car rental payments decision has NMW implications

The Employment Appeal Tribunal has ruled that car rental payments were ‘in connection with the employment’ and reduced pay for National Minimum Wage, writes Dorothée Giret.

In a recent case, Augustine v Data Cars Ltd, the Employment Appeal Tribunal (EAT) considered the correct test for assessing what expenses reduced pay for National Minimum Wage (NMW) purposes. The EAT agreed with the Claimant taxi driver’s arguments that car rental payments and a payment for uniform were ’in connection with’ his employment and reduced his pay for NMW purposes. This decision may have ramifications for many employers.

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