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Judicial review confirms that NMW amendment on travel dispensations will come into force

Judicial review confirms that NMW amendment on travel dispensations will come into force on 1 January 2011 as planned.The judicial review against the Government's decision to make Regulations preventing the use of tax free travel and subsistence expenses from counting towards national minimum wage pay has now been heard. The judge decided that the judicial review application should be dismissed.  As a consequence, the amendment to the National Minimum Wage (NMW) regulations will come into force on 1 January 2011 as planned.Commenting on the outcome, Lewina Farrel, Head of Professional Services at the REC, says:"The REC has for a number of years called on the Government to ensure clarity and consistency in the way that travel and subsistence schemes are interpreted by HMRC - particularly with regards to how such schemes interact with national minimum wage regulations. This week's judicial review confirms that the amendment to the regulations will come into force as planned from January 1st. Our priority now is to continue working with members to ensure that the changes are understood and to co-operate with HMRC and BIS on the effective enforcement of the regulations".

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