In Mr W Augustine v Data Cars Ltd: EA-2020-000383-AT, the Employment Appeal Tribunal (EAT) held that in calculating the National Minimum Wage of a cab driver deductions could be made for the vehicle and uniform rental costs. They were incurred in connection with his employment.

Mr Augustine worked for Data Cars Ltd as a minicab driver.

The EAT agreed with Mr Augustine finding that the ET had erred in deciding the costs were not deductible.

Mr Augustine also tried to claim consequential financial losses as a result of not being paid the NMW. His claims here related to a delay in completing ‘the Knowledge’ and utility company penalties for unpaid bills. The EAT, finding that the ET had decided this point based on incorrect facts, remitted the point back to the ET for consideration, commenting that the claims looked 'fairly ambitious'.

Before the Employment tribunal could consider the NMW point they first had to determine whether Mr Augustine was an employee or worker at all as Data Cars claimed he was not. The ET disagreed finding that he was an employee and NMW did apply.

Useful guides on this topic

National Living Wage/National Minimum Wage: HMRC checks
What checks can HMRC carry out to check that employers are paying at least the National Living Wage/National Minimum Wage? What are the implications of paying too little?

Directors & the National Living Wage
All employees are subject to the National Living Wage (NLW) or, if under 25, to the National Minimum Wage (NMW).

Employment status & detailed checklist
Why is it important to check my employment status? What tests should I use? What is the recent case law?

External link

Mr W Augustine v Data Cars Ltd: EA-2020-000383-AT 

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