UNIONS have praised a new law that prevents firms from deducting travel expenses from minimum wage payments.
The new rule – now in force – sets out what counts as part of a wage.
It outlaws companies from deducting travel expenses – meaning the minimum wage must be paid in full.
Despite employment and services agency Cordant seeking permission to appeal against the new rule, High Court judge Mr Justice Kenneth Parker dismissed the agency’s action, saying it made it easier to discern whether an individual was receiving a payment – and therefore for a company to stay within the law.
It means Cordant’s employees will receive the full minimum wage, currently £5.93 an hour.
The group has 30,000 employees in low-paid service sector jobs such as cleaning and security, which are typically minimum wage jobs.
Mary Maguire, spokeswoman for public sector trade union Unison, said it would prevent bad employers from exploiting workers.
She said: “It’s good news that the courts have come down on the side of low paid workers.
“Employers should not be allowed to get around their legal obligations in this way.
“Unison fought for years to get a statutory national minimum wage established that would help stop exploitation by bad employers by providing a pay floor.
“Despite the fact that it is still too low, it is incredible that employers are still trying to get round it.”
