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To ask the Secretary of State for Business, Innovation and Skills what recent discussions he has had with representatives of the restaurant industry that do not allow waiters to keep tips, but instead use this additional income to pay other business costs.
To ask the Secretary of State for Business, Innovation and Skills what recent discussions he has had with representatives of the restaurant industry that do not allow waiters to keep tips, but instead use this additional income to pay other business costs.
There have been no recent discussions on this subject with Ministers at the Department for Business, Innovation and Skills.
To ask the Secretary of State for Business, Innovation and Skills what steps he is taking to reduce the number of restaurants that do not allow waiters to keep tips, but instead use this additional income to pay other business costs.
To ask the Secretary of State for Business, Innovation and Skills what steps he is taking to reduce the number of restaurants that do not allow waiters to keep tips, but instead use this additional income to pay other business costs.
Under the national minimum wage regulations tips cannot be used to make up minimum wage pay. This means that workers must receive at least the minimum wage in base pay, with any tips they receive being paid on top.
Where tips are paid to the business and collected by the employer (for example where they are added to payments by credit card), they are the property of the employer. There are no legal requirements setting out how an employer must handle such tips. Instead it is a matter for agreement between the employer and workers what proportion of these monies are distributed to workers.
Cash tips given by customers directly to a worker do not belong to the business but to the member of staff to whom they are given. Workers can agree to pool or share their cash tips, but employers cannot force members of staff to do this.
The Government has made available best practice guidance on tips on gov.uk website. This guidance recommends:
that workers should be fully informed on how tips are shared between the business and the workers;
that business should seek to reach agreement with workers on any change of policy; and
businesses clearly display their tips policy for consumers.