A large employer has been fined £5,000 by HM Revenue and Customs (HMRC) and ordered to repay over £30,000 in wages to 40 workers who were underpaid, in a stark reminder to employers to beware of making deductions from wages for a benefit that takes pay below the national minimum wage.
The Employment Appeal Tribunal has held that, on its true construction, a company's long-term disability scheme applied to employees who were permanently incapable of employment in any capacity, rather than merely incapable of working for the company.