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meeson · Site Admin Joined: 26 Feb 2007 Posts: 615

Unfair top-up tips to be banned

Pubs told new law will come into force this year

The practice of using tips to boost staff pay to minimum wage levels will be outlawed from October this year, the government has announced.

The move is intended to ensure fair wages for thousands of workers and increase consumer confidence in the use of tips.

Paul Boggia from award winning food pub, the Kingston Arms in Cambridge, said: “I think it is the right thing to do. I don’t see how anyone can justify dipping into tips which have been given at customers’ discretion to staff.

“It is not often the government gets something right but in this case it has.”

The government is also planning to introduce a new industry code of best practice to provide greater transparency for consumers.

Employmentr 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.

“This is a basic issue of fairness. We do not believe employers should be able to use tips meant as a bonus for staff to boost pay levels to the legal minimum.”