For the time being it looks as though Middlesborough FC have lost their case in respect of the deduction from pay for staff who wanted to pay for their season ticket by deduction from pay. Last year the Employment Tribunal (ET) ruled that the deduction was not an infringement on NMW and so by implication not an advantage to the employer. The reasoning behind this was in their consideration “the payments were in respect of a purchase of goods or services from the employer” one of the five reductions in pay allowed in the NMW Regulations of 2015.
Not so, was the opinion of the Employment Appeals Tribunal (EAT) judge who overturned the earlier ruling by the ET. The thrust of the case was around whether or not the deduction which was kept in the employer’s bank account met the statutory definition of “payment [for] purchase of… services]. In essence was it a benefit to the employer? To a degree it could be argued that it was, as afterall no season ticket holders, no income therefore, no club!
There is a possibility that this will continue on with an appeal by Middlesborough FC to the Court of Appeal.
