Using tips to make up staff pay to minimum wage levels will be outlawed from October this year, it was announced today.
The Government said it will also be working towards greater transparency and clarity for consumers by introducing a new code of best practice for the hospitality industry.
The announcement is the Government’s response to a consultation on the use of tips, gratuities, service charges and cover charges in payment of the national minimum wage.
The Department for Business said a majority of businesses responding to the consultation backed the proposed changes.
Employment relations minister Pat McFadden said: “When people leave a tip for staff, in a restaurant or anywhere else, they have a right to know that it will not be used to make up the minimum wage. It is also important for employers to have a level playing field on wages.
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