The Government today launched a consultation on proposals to make tips fairer for hard-working service staff across the UK. Under the plans, employers will be banned from using any tips or service charges towards payment of the national minimum wage.
Employment Relations Minister Pat McFadden said, “When people leave a tip they expect it to go to staff on top of their pay, not to be used to make up the minimum wage. This is an issue of fairness and common sense. We intend to amend regulations so that tips can no longer count towards payment of the National Minimum Wage. We also want employers to make it clear how they distribute tips so that customers know where their money is going. It’s crucial we get these changes right and we are keen to hear everyone’s ideas as part of our consultation.”
As well as inviting comments on proposals to change the rules so that tips are paid on top of the national minimum wage, the consultation will also look at ways of improving information for consumers.
When changes to the law take effect, a Code of Practice could provide guidance on issues such as how to distribute tips and inform customers about their policy on tips and gratuities.
