A VILLAGE sub-postmaster has lost a landmark legal battle which would have guaranteed the minimum wage for himself and 16,000 others.

Ken Hayward, who runs a post office and general store from his Holden Street home in Belthorn, battled for three years to be recognised under legislation called the Working Time Directive.

But, after receiving notice this week that an appeal had failed, he has conceded defeat and decided not to take the matter to the Court of Appeal.

The country's 16,000 sub-postmasters would have enjoyed the benefits of a victory but Mr Hayward said the case had become too much of a burden.

Mr Hayward, 50, who provided his own legal representation throughout the dispute, said: "I still think it's wrong in the law but don't have the means to carry on."

He went to the employment tribunal after the introduction of the legislation guaranteeing a minimum wage of £4.20 an hour and holiday pay to 'workers'. He is currently paid £3.65 an hour and the Post Office tops up the pay to the minimum wage. However, this is not guaranteed and could be cut at any time, leaving sub-postmasters with a base rate.

But the tribunal decided that Mr Hayward was a 'freelance agent', not covered by the act, because the post office was only one part of his business. Mr Hayward appealed and the case was heard again in late November before a 30-plus page ruling was sent by post this week.

He said: "It still says we don't work for the Post Office and they are our clients, so we are not covered by the legislation. It's disappointing."

The future of his shop is now uncertain because Mr Hayward thinks the Post Office may reduce his hours, costing him vital cash.