Oral question asked in the House of Commons, by Shona McIsaac (Labour). It was answered on Thursday, 12 November 2009 on behalf of the Department for Business, Innovation and Skills.

Minimum Wage (Tips)

Question: In constituencies such as Cleethorpes, where many people work in the hospitality industry, this move has been widely welcomed, but can my right hon. Friend tell me whether there is still a difference if people tip via cash or credit or debit card? With one of those methods, the money used to go to staff, and with the other, it did not. Will he clarify the position?

Answer: Yes, I am very happy to clarify that. My hon. Friend is right that, in the past, the law treated tips differently depending on whether they were left by cash or by credit card. The change that we have made clarifies the position and makes it clear that all tips and gratuities, whether left by cash or by credit card, can no longer be used to make up the minimum wage. That is right; it is an important measure of justice for service workers; and it is entirely in line with the public's expectations.

Secondary information