New tipping rules come into force for restaurant staff

New rules come into force today, which the Department for Business, Innovation and Skills says “ensures that thousands of workers get a fair deal on tips and wages”.

The changes make it illegal for businesses to use tips to bring staff pay up to minimum wage levels.

They come into effect on the same day as new increases to national minimum wage rates, benefiting up to one million people.

Business Secretary Lord Mandelson said: "When I leave a tip I don't expect it to be used to make up the minimum wage. I want it to go to the person who has served me as a thank you for their service. This is a basic issue of fairness. Tips are meant as a bonus – not a tool to boost pay to the basic minimum."

Mandelson added that thanks to the support from the British Hospitality Association (BHA), a new code of practice has also been launched. "This will promote good tipping practices amongst businesses and ensure that consumers are clear about what happens to their money," the minister said.

Consultation during the development of the Government's policy on tipping has shown wide support for the changes, including from business groups, unions and consumer groups.

The code of practice will be closely monitored to ensure that it is a success, with a review in one year's time.

Derek Simpson, Unite joint general secretary welcomed today's change in legislation, calling it a "victory".

"There is now an urgent need for the hospitality industry to be transparent in how they handle the tips and service charge money left for staff. The Code launched today will help consumers see where the money left for good service is going," said Simpson. "Unite is looking to the sector to adhere to the best practice principles and ensure that customers have the information they need to make an informed choice before they leave a tip or service charge. Unite wants to see all employers sign up to the Code and ensure that their staff and customers can be confident that staff are treated fairly."

Workers who want advice about their workplace rights, including the NMW can call the Pay and Work Rights helpline.

The helpline number is 0800 917 2368.
The textphone number is 0800 121 4042.
Information is also available on www.direct.gov.uk/payandworkrights

To sign up to the BHA's Code of Practice, click here.

Words: Clare Riley

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