The Government yesterday fought off a legal challenge against new minimum wage legislation that comes into force tomorrow.
A High Court judge in London rejected criticism of a change to rules that determine what should count as forming part of an employee's remuneration. Mr Justice Kenneth Parker dismissed a judicial review action brought against Vince Cable, the Secretary of State for Business, Innovation and Skills.
He ruled that there was nothing unlawful or irrational in relation to a legislative amendment to Minimum Wage Regulations over travel expenses.
Yesterday's ruling said that payments made by employers to workers in respect of travelling expenses "that are allowed as deductions from earnings under section 338 of the Income Tax (Earnings and Pension) Act 2003" will not count towards meeting the obligation to pay the national minimum wage.