Bar worker underpaid NMW: informal arrangement fails to meet legal minimum
A bar worker who was paid £400 a week for variable hours was underpaid the National Minimum Wage by over £2,600. The tribunal also awarded £800 for failure to provide written particulars.
1 min read · Last updated 19 May 2026
Case details
- #national-minimum-wage
- #unmeasured-work
- #tips-waiver
- #holiday-pay-exceeded
- #no-written-contract
- #partnership-expectation
Key facts
- The claimant was employed as a bar worker at the Foresters Arms pub from 19 April 2021 to 18 August 2022.
- There was no written contract or written statement of employment particulars.
- The claimant was paid £400 per week for 40 hours, but worked variable hours without clocking in.
- The claimant agreed not to receive tips due to an expectation of becoming a business partner.
- The claimant took more than the statutory minimum holiday entitlement.
- The respondent failed to keep adequate records of the claimant's working hours.
Timeline
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Employment started
The claimant began working at the Foresters Arms pub.
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First payslip
The claimant received his first payslip covering 5 weeks.
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Christmas bonus
The claimant received a £1000 Christmas bonus, which was not in lieu of tips.
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NMW rate increase
The National Minimum Wage rate increased from £8.91 to £9.50 per hour.
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Resignation
The claimant resigned with immediate effect.
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Early conciliation started
Early conciliation began.
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Early conciliation ended
Early conciliation ended.
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Claim presented
The claimant presented his claim to the Employment Tribunal.
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Unfair dismissal struck out
Employment Judge D Wright struck out the unfair dismissal complaint due to insufficient service.
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Final hearing
The final hearing took place at London South Employment Tribunal.
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Judgment issued
Employment Judge O'Neill issued the judgment.
The legal issue
The tribunal had to decide whether the claimant was entitled to unpaid National Minimum Wage, holiday pay, tips, notice pay, and interest, and whether the respondent failed to provide written particulars of employment.
The outcome
The tribunal upheld the claim for unlawful deduction of wages in respect of the National Minimum Wage, and for failure to provide a written statement of particulars. All other claims (tips, holiday pay, notice pay, interest, pension contributions) were dismissed.
Compensation:
- £2,601.52 for underpayment of National Minimum Wage
- £800 for failure to provide written particulars
- Total: £3,401.52
Lessons & takeaways
- Employers must pay at least the National Minimum Wage for all hours worked, regardless of any agreement for a fixed weekly sum.
- Keeping accurate records of hours worked is essential; without them, tribunals may rely on the worker's evidence.
- A verbal agreement to waive tips in exchange for a future partnership does not exempt an employer from paying the minimum wage.
- Workers with less than two years' service cannot claim unfair dismissal, but can still bring claims for unlawful deduction of wages.
This case shows how informal working arrangements can lead to significant underpayment of wages. The bar worker was paid a flat £400 per week, but his hours varied considerably. When he resigned after 16 months, he discovered that his pay fell short of the National Minimum Wage for the hours he actually worked.
What went wrong
The employer, David Brooker, did not keep any records of the claimant's working hours. There was no written contract or statement of employment particulars. The claimant had agreed not to receive tips because he expected to become a business partner — an arrangement that never materialised. The tribunal found that the fixed weekly pay did not cover the minimum wage for the hours worked, especially after the NMW rate increased in April 2022.
What the employer could have done differently
Keeping simple records of hours worked and paying at least the NMW for each hour would have avoided this claim. Providing a written contract with clear terms about pay, hours, and holiday entitlement would also have prevented the £800 penalty for failing to give written particulars. The informal 'friends helping out' approach does not override statutory employment rights.
Why this matters
This case is a reminder that the National Minimum Wage applies to all workers, regardless of how informal the arrangement. Even if an employee agrees to a fixed weekly sum, the employer must ensure it meets the legal minimum for the hours worked. The tribunal's willingness to calculate underpayment based on the worker's evidence — in the absence of employer records — shows the importance of proper record-keeping.
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