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Plans to tackle tipping abuse

By rotide
Created 01/08/2008 - 09:35

Businesses will be banned from using staff tips to bring wages up to the minimum wage under new plans announced by the government.

The move, which is aimed primarily at those in the service sector and restaurants in particular, is likely to come into force next year.

"When people leave a tip, in a restaurant or elsewhere, they expect it to go to service staff and, as consumers, we've got a right to know if that actually happens," said business secretary John Hutton.

The move was welcomed by the Unite union, which intends to introduce a Fair Tips logo for use in restaurants where staff are paid at least the minimum wage and receive all tips on top of that.

The national minimum wage will rise from £5.52 to £5.73 for those aged over 21 on 1 October.


Source URL:
https://www.newbusiness.co.uk/news/plans-tackle-tipping-abuse