Universal Music has been forced to axe its salary sacrifice mobile phone benefit due to poor staff take-up rates.
The media firm believes that because the scheme was introduced at a time when employees were already tied into their own mobile phone contracts, many were reluctant to purchase another mobile phone.
Michael Pye, director of HR operations at Universal Music, said: "We decided that because the take up was so small it was more trouble than it was worth, so we would not run the scheme again this year."
The benefit, which has been running for the past two years, was due to be re-launched this month to employees, but this will no longer happen.