In Commissioners for Her Majesty's Revenue and Customs v Annabel's (Berkeley Square) Ltd and others EAT/0562/07, the EAT held that tips distributed to workers via a troncmaster's bank account designated for that purpose were not payments made by the employer to the worker, because ownership of the money had passed to the troncmaster. The payments could not, therefore, be calculated as part of the national minimum wage payable to the workers.
The Employment Appeal Tribunal has held that tips and service charges distributed by troncmasters did not count towards the national minimum wage.
XpertHR is part of the LexisNexis® Risk Solutions Group portfolio of brands.
The materials and information included in the XpertHR service are provided for reference purposes only. They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. Use of the service is subject to our terms and conditions.
Copyright © 2022 LexisNexis Risk Solutions Group
© 2022 LexisNexis Risk Solutions Group.