NMW must be independent of travel claims

A high court bid to overturn national minimum wage (NMW) legislation has proved unsuccessful for one company.

Cordant, an employment and services agency, brought Judicial Review action against Vince Cable, the business secretary, who unveiled laws that mean travel expenses will be exclusive of the NMW.

Mr Justice Kenneth Parker explained that the appeal was unsuccessful because it was put forward "in the guise of a common law and legal equality case".

He also noted that Cordant had launched an "attack on the economic merits of regulatory reform affecting the labour market".

As a result of the ruling, the company - along with others in the country - will have to pay workers travel expenses on top of the agreed NMW limits.

At present, the NWM for workers aged 21 and over stands at £5.93 per hour and £4.92 for those between the ages of 18 and 20.

Published on: December 31, 2010

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