Firms warned over wage deductions
Employers who supply accommodation to their employees should be wary when making wage deductions to cover utility costs following a landmark ruling handed down by the Court of Appeal.
The decision means bosses at holiday camp companies Butlins and Haven will be forced to shell out almost £1m in refunds to workers.
During 2004 and 2005, Leisure Employment Services, which owns both firms, deducted £6 per fortnight from salaries of employees living on site to cover utility bill costs. However, the deductions meant that wages for many staff fell below the national minimum wage level.