A CATERING company which is challenging a claim that it owes hostesses and stewards £69,000 under the new minimum wages rule, wielded powers equivalent to that of an employer over the workers, an industrial tribunal was told yesterday.
The National Minimum Wage Enforcement Team, part of the Inland Revenue, says the Durham-based Executive Coach and Catering Services (ECCS) underpaid 15 members of staff employed on National Express coaches.
This is disputed by the owners of the Carrville-based firm, Terry and Annette Hewitson, who say the hostesses and stewards were self-employed and therefore ineligible for the minimum wage. But Paul Kilkoyne, representing the Inland Revenue, told an industrial tribunal in Newcastle that, while there was no contract of employment, all the elements of a employer employee relationship were present.
He said the hostesses and stewards were interviewed, underwent a selection process and probationary period.
The company charged the bus companies £16 per journey, giving £11 to the hostesses and stewards to cover expenses of getting to and from the departure points.
Mr Kilkoyne argued this retainer was for all intents and purposes a wage.
Judgement has been reserved.
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