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Wages Act: Reduced share of service charges was unlawful deduction

This report relates to 1 case(s)

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    Saavedra v Aceground Ltd t/a Terrazza Est [1995] IRLR 198 EAT (0 other reports)

A waiter whose weekly share of the restaurant's service charge pool was reduced because the management unilaterally decided to allocate part of the pool to the "house" to offset the restaurant's running costs, suffered unlawful deductions from his wages, holds the EAT in Saavedra v Aceground Ltd t/a Terrazzo-Est. The employee's contract of employment stated that he was entitled to basic pay "plus service", and although the employer had some discretion as to allocation of the service charges collected, it was obliged to distribute the whole of it to those who had provided the service.