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Annabels appeals 'tronc' tips system decision

Practice group: Employment law


02 July 2008

The case of a private members club at the centre of a long-running battle regarding tips is set to enter a new phase.

Caterer Search reports Annabels in London is to contest a decision which saw HM Revenue and Customs (HMRC) overturn a key ruling by an employment tribunal last September regarding staff wages.

The case examined if tips paid to staff through a pooled tronc system counted towards the national minimum wage.

An Employment Appeal Tribunal on June 13 ruled bar service charges paid into a "troncmaster's" bank account for distribution could not be counted towards meeting the national minimum wage.

Quoted by Caterer Search, a spokesman for the business advisory firm representing Annabels said any firm facing new HMRC demands as a result of the ruling should "be putting matters on hold" pending the outcome of the appeal.

HMRC first brought the case to Annabels in 2006, with the club at first appealing this ruling successfully. HMRC then managed to overturn this in their favour, with Annabels again now appealing.

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