New laws to make sure hospitality workers can keep their advice | UK news

[ad_1]

Employers withholding tips from workers will be breaking the law under government plans to help nearly two million workers in the hospitality, leisure and service sectors.

It comes after research that showed many restaurant, bar, and cafe owners add discretionary service fees to customers’ bills, but then keep some of the money themselves.

The problem was highlighted in 2015 when it was revealed that some chains were adding service fees and using some of that money to increase managers’ salaries.

Managers were usually paid only minimum wages based on this understanding.

Some chains have also charged workers processing fees for tips left by credit and debit cards – the method of payment for about 80% of tips.

New laws will force employers to tip workers without any deductions.

Employees will be able to request tip records and take employers to court if they feel tips have been withheld.

Labor Markets Minister Paul Scully said: “Unfortunately, some companies choose to withhold cash from diligent employees who have been tipped by clients as a reward for good service.

“Our plans will make this illegal and ensure that advice reaches those who worked for it.

“This will provide a boost to workers in bars, cafes and restaurants across the country, while reassuring customers that their money will go to those who deserve it.”

Most hospitality workers earn the national minimum wage or living wage and rely on tips to increase their income.

Under laws enacted more than a decade ago, tipping does not count toward minimum wage rates.

The government did not say when the new laws would be issued, but said they “will form part of a set of measures that will provide more protection for workers’ rights.”

They added, “More details will be determined in due course.”

[ad_2]