Thousands of ex-holiday camp workers in the UK are in line to receive back-pay totalling about £1m because they had to pay for their own electricity.
Thousands of ex-holiday camp workers in the UK are in line to receive back-pay totalling about £1m because they had to pay for their own utilities.
Revenue and Customs found some workers at Butlins and Haven holiday camps were charged for gas and electricity when living on site between 2004 and 2005.
Revenue and Customs found some workers at Butlins and Haven holiday camps were charged for gas and electricity when living on site between 2004 and 2005.
In a landmark ruling, the Court of Appeal said that meant workers had received less than the minimum wage.
In a landmark ruling, the Court of Appeal said that meant workers had received less than the minimum wage.
Butlins said every effort would be made to trace workers and compensate them.
Butlins said every effort would be made to trace workers and compensate them.
The company would carefully consider the implications of the case, it added in a statement.
In a statement, the two sister companies said they were "carefully considering" the implications of the ruling, which followed a tribunal case taken by seven former workers who were invoiced for heating and lighting.
'Wider implications'
Low pay
Up to 10,000 workers could receive back-pay as a result of the judgement. The case was brought by Revenue and Customs with the support of the GMB union.
Up to 10,000 workers could receive back-pay as a result of the judgement, according to Revenue and Customs which brought the case with the support of the GMB union.
It was found that seasonal workers, such as bar staff and receptionists, were each charged £6 a fortnight for gas and electricity when they lived on site between 2004 and 2005.
It was found that seasonal workers, such as bar staff and receptionists, were each charged £6 a fortnight for gas and electricity when they lived on site between 2004 and 2005.
This is certainly something that any employer that isn't paying the national minimum wage really does need to realise Clare Merrills, Revenue and Customs
Because they were low paid, the deduction meant they got less than the minimum wage and this breached regulations, it was ruled.
Because they were low paid, the deduction meant they got less than the minimum wage and this breached regulations, it was ruled.
Revenue and Customs said the ruling would have wider implications for all workers in similar circumstances.
In his judgement, Lord Justice Buxton said: "The workers are seasonal staff employed as bar staff, shop assistants, receptionists, security staff and in some cases electricians and plumbers in various parts of the country.
It warned that employers who attempted to flout the law would be pursued.
"If the sum of £3 per week were to be deducted from their wages that would reduce remuneration below the national minimum wage level."
A spokesman for Butlins and Haven, owned by Leisure Employment Services, disputed the Revenue and Customs' figures and said the payout was only likely to affect "a few hundred workers" and would be less than the estimated £1m.
Most of the affected staff had been identified, he said.
In a joint statement, the companies said that the £3 paid by workers had been well below the commercial tariff charged by utility companies.
"Butlins will now trace all the 'live-in' workers who were employed during the 2004 and 2005 holiday seasons to offer them full recompense," the statement added.
'Wider implications'
Revenue and Customs, the government department that enforces the minimum wage, said the ruling would have wider implications for workers in similar circumstances.
Clare Merrills, from the department, told the BBC's Today programme that employers who attempted to flout the law would be pursued.
"This is certainly something that any employer that isn't paying the national minimum wage really does need to realise - that we are out there, we will catch you and if you don't pay up when we ask you to in our first very polite manner then we will take you to court if needs be."
The minimum wage has been in force for more than seven years.
It is currently £5.35 per hour for adults and £4.45 for workers aged 18 to 21.
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