Follow up

Augustine v Data Cars Ltd

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Car and uniform rental payments and the minimum wage

Minimum wage breach

In Augustine v Data Cars Ltd 2021 (see Follow up ), A was employed as a taxi driver. He rented a car and uniform from his employer, although he could use his own car and he only needed a uniform to do optional “gold level” work. He brought a claim alleging he hadn’t been paid the national minimum wage (NMW). The Employment Appeal Tribunal ruled that when calculating whether A had received the NMW the rental payments were deductible under regulation 13(1)(b) National Minimum Wage Regulations 2015 (SI 2015/621) as they were made “in connection with the employment” and weren’t reimbursed by his employer. A hired the car and wore the uniform in connection with his employment. The fact that he could have met his obligations by using his own car, or that the uniform rental was optional as he didn’t have to do gold level work, wasn’t relevant to this test.

Pro advice. It didn’t matter that the rental payments weren’t a requirement of A’s employment as that wasn’t the correct test.

Implications

If staff rent equipment from you in connection with their employment and you don’t reimburse them, even if the hire is optional, the rental payments will reduce their pay for NMW purposes.

Pro advice.“Employment” here is used widely to cover both employees and workers.

Augustine v Data Cars Ltd