Hospitality industry can now have its say

Workers within the hospitality sector can now have their say on government proposals which aim to make the current tipping system fairer for employees.

The consultation, which is also open to employers and consumers has been launched today.

Under the plans, companies will be banned from using any tips or service charges towards payment of the national minimum wage.

Employment relations minister, Pat McFadden explained why seeking the views of the hospitality industry is so important to the success of the legislation: "This is an issue of fairness and common sense. We want employers to make it clear how they distribute tips so that customers know where their money is going. It is crucial we get these changes right and we are keen to hear everyone's ideas as part of our consultation."

The British Hospitality Association (BHA) said this morning that the industry has nothing to hide and will remain transparent in the way the tips system is operated.

In a statement the BHA said: "The hospitality industry is well aware of the proposals by BERR and the British Hospitality Association, incorporating the Restaurant Association, is working hard with its members to prepare for it.

"However, the industry is currently facing the huge challenge of increasing costs and a rapidly falling consumer spend and it is therefore vital that the change is implemented in the right way to protect the thousands of employees in the industry, whose jobs could be at risk from the increased costs this change will place on businesses during a time of economic downturn.

"In order to reduce the risk of job losses and business failures, the industry needs time to adjust its financial and operational models."

To have your say click here for the consultation which closes on 16th February 2009.

Words: Clare Riley

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