Leisure Employment Services Ltd V HM Revenue & Customs - Facts

Facts

Leisure Employment Services Ltd was a wholly owned subsidiary company of Bourne Leisure Ltd. It employed a number of holiday workers on caravan sites around England. These workers were paid the minimum wage. They were also given accommodation in the company's caravans, for which the maximum level of deductions from their wages were made (the maximum amount is stated under the r 36 of the National Minimum Wage Regulations). The employer also tried to deduct £6 a fortnight for heat and light bills. HM Revenue and Customs (which enforces the National Minimum Wage Act) issued an enforcement notice. It said this led the employer to breach their obligations under the Act. Leisure Employment Services Ltd. appealed to the Employment Tribunal, which gave judgment in their favour. But the Employment Appeal Tribunal overturned the judgment. The Court of Appeal eventually dismissed the employer's appeal.

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