Tips as pay practice to be banned (about time)

The practice of using tips to make up workers’ pay to the minimum wage level is to be banned from October, the Government has announced.

The move follows a long campaign by unions, pushing for greater transparency and clarity for customers in bars and restaurants. The move is expected to benefit thousands of employees in the leisure and hospitality industries.
Employment relations minister Pat McFadden said: "When people leave a tip for staff, in a restaurant or anywhere else, they have a right to know that it will not be used to make up the minimum wage. It is also important for employers to have a level playing field on wages."This is a basic issue of fairness. We do not believe employers should be able to use tips meant as a bonus for staff to boost pay levels to the legal minimum."Our consultation showed wide support for these changes, including from business groups, and we are working with them to ensure that consumers get the information they need”.

Derek Simpson, Unite's joint general secretary said: "The Government are to be congratulated for doing the right thing by low-waged waiting staff and moving to close the loophole which has allowed greedy employers to use tips to pay staff the minimum wage."Hard-working waiting staff will be delighted to learn that bad employers can no longer line their pockets with the money that customers intended to go to workers."This is a triumph for the poorly paid in restaurants, bars and hotels across the country, and for Unite's campaign on behalf of all hospitality staff”.


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