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National Minimum Wage & Constructive Dismissal Claim: Episode 96

Can an employee rely on the failure to pay National Minimum Wage to claim constructive unfair dismissal?

In this episode of the podcast I cover a case, which is rather unusual, in that an employee was paid just 33p per hour. When she resigned and claimed constructive unfair dismissal her claims were initially unsuccessful as she did not know that she was entitled to minimum wage and that her employer was therefore in breach. The case is Mruke v Khan in the Court of Appeal.

In this episode I will cover:

  • The National Minimum Wage rates (as below);
  • The unusual facts of this case;
  • Background to a successful constructive unfair dismissal claim.

Action Points

  1. Ensure that you pay the National Minimum Wage – new rates: 25+ £7.83; 21-24 £7.38; 18-20 £5.90; 16-17 £4.20; apprentice £3.70.
  2. Check your salaried employees to make sure that their hourly rate does not drop below the new rates;
  3. Seek advice and expert support at the earliest opportunity if a dispute arises.  

Useful Links

You can read the full case here: Mruke v Khan – Court of Appeal 2018

As part of our HR Harbour annual subscription service for employers we provide guidance and support with settlement discussions and documentation. If you would like to know more about the HR Harbour Service and how you can get unlimited support from as little as £180 per month please contact me for a no obligation discussion – or you can find full details here: HR Harbour

Don’t forget you can contact us by email or or by telephone 01983 897003, 01722 653001 or 023 8098 2006

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The information contained in this Podcast and post is provided for guidance and is a snapshot of the law at the time. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.

The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.

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