Changes to tipping laws

Customer tips in bars and restaurants will no longer be counted towards the pay of staff to bring them up to the minimum wage.The changes are aimed at stopping the controversial practice of employers using tips and service charges to top up workers' wages to make sure they earn the statutory adult rate of £5.52 an hour.Business Secretary John Hutton said: "Hundreds of thousands of people in the UK have jobs in sectors where tipping is commonplace. 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."This is an issue of fairness and common sense and it's one many people clearly care a lot about. Under the current law, all workers are already entitled to receive the minimum wage."The changes we're proposing will mean that in the future, tips cannot count towards payment of the minimum wage."We also want to encourage employers to make it clear how tips are distributed so that customers know where their money is going and whether or not the establishment operates a fair tipping policy."A consultation on the Government's recommendations will be launched in the autumn and the regulations are expected to be changed next year.The Unite union plans to display its Fair Tips logo in bars and restaurants across the country as a symbol that they pay their staff at least the minimum wage with 100 per cent of tips on top.In October, the adult minimum wage rate will increase to £5.73 an hour with the rate for 18 to 21-year-olds rising from £4.40 to £4.77 and the figure for 16 and 17-year-olds will go up from £3.40 to £3.53.

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ITN | July 31, 2008

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