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Wages: Tips can be "remuneration"

This report relates to 1 case(s)

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    Nerva and others v RL & G Ltd [1996] IRLR 461 CA (0 other reports)

Tips included by customers paying restaurant bills by cheque or credit card, unlike cash tips, become the property of the restaurant and can be counted as part of a waiter's "remuneration" for the purposes of legislation dealing with minimum wages, holds the Court of Appeal in Nerva and others v RL & G Ltd (t/a Paradiso E Inferno and Trota Blu Wine Bar) [1996] IRLR 461. Although Wages Councils were abolished in 1993, this decision has continuing relevance for employees who are contractually entitled to the last rate of pay set by a Wages Council. It might also be taken into account in other contexts, such as when calculating a "week's pay" for statutory redundancy payment purposes.