The People Bulletin

From the 1^st October the national minimum wage increased. The current rates are now:

• £6.08 - the main rate for workers aged 21 and over;
• £4.98 - the 18-20 rate;
• £3.68 - the 16-17 rate for workers above school leaving age but under 18; and
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship.[1]

While for most businesses this increase will be automatically implemented, the case of Greer v Coulter (t/a Alphreso Cafe) acts as a reminder that regardless of the size of your business or the age of your employees the same rules apply.

Greer v Coulter (t/a Alphreso Cafe)

In the case of Greer v Coulter (t/a Alphreso Cafe) it was decided that a small employer’s decision to dismiss a teenage worker to avoid paying the national minimum wage increase when they turned 18 was not only age discrimination but also “callous”.

Ms Greer had worked as a dishwasher in Ms Coulter’s café for two years, she worked eight hours a week for £4.00 per hour. The day before her 18^th birthday she informed Ms Coulter that as she would be turning 18 and that she would be entitled to the minimum wage for a person aged 18-20, £4.92 per hour.

A week later Ms Greer called Ms Coulter to find out her shift hours for the following week. Ms Coulter informed her that there would be no more shifts as Ms Greer had been “cheeky”.

Ms Greer wrote to Ms Coulter asking if she had been dismissed, Ms Coulter did not reply. Ms Greer, assumed she had been dismissed and believing it was because of her request to be paid minimum wage, attempted to appeal against her dismissal but did not receive a response. Ms Greer therefore brought claims for unfair dismissal and age discrimination. 

The tribunal found that Ms Greer had been unfairly dismissed for asserting her statutory right to claim the national minimum wage. It was clear to the tribunal that Ms Coulter did not wish to pay the increased minimum wage to Ms Greer and therefore dismissed her without further communication. 

In addition to this the tribunal found that Ms Coulter discriminated against Ms Greer on the grounds of her age because, as soon as she notified Ms Coulter that she was about to become 18 years of age, she dismissed her rather than have to pay her the increased wage. The tribunal described this as, "a most upsetting turn of events for a young person beginning her working life". 

Ms Greer was awarded £1,329.56 for age discrimination and unfair dismissal.

www.xperthr.co.uk

[1] www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201