Deductions for electricity and gas were unlawful

Holiday-camp workers may be entitled to reclaim wages after a ruling that payments for gas and electricity cannot be counted towards the national minimum wage.

Seasonal staff at holiday resorts run by Butlins, Haven and British Holidays received free shared accommodation in caravans or chalets, but were charged £6.00 per fortnight for utilities.

Their employer argued that it was entitled to count this £6.00 as part of the workers’ wages, which took them below the National Minimum Wage (NMW).

As the employer provided free accommodation, it was already entitled to — and had used — a credit of £3.50 per day (the rate is now £3.90) for the purpose of calculating the minimum wage to which the workers were entitled.

But the Employment Appeal Tribunal held that the gas and electricity charges were payments “in respect of accommodation”, so the employer could not receive any further credit for them.

The GMB general union is asking workers who may be owed money to visit www.gmb.org.uk/joinonline, or to call Senior Organiser Tim Roache on 0115 960 7171.

Commissioners for HM Revenue & Customs v Leisure Employment Services Ltd UKEAT/0106/06