Labour Research April 2003

Law Matters

Minimum pay law to change...on back pay

The government is to amend National Minimum Wage (NMW) legislation so that the Inland Revenue can force employers to give backpay to former employees paid less than the NMW. The change is required to reverse a recent Employment Appeal Tribunal ruling Wales & Midlands v Bebb Travel [2002] IRLR 783. This said that past employees could not recover underpayments.