More on Tips

Employers in the hospitality industry have made a last-ditch attempt to get the Government to delay introducing new laws that will make it illegal to use tips to top up the national minimum wage. The BHA is asking The Department for Business to do this as this week sees the end of a three-month consultation on the proposals.

The department reports that the initial feedback from the consultation suggests that there was “significant support” for the proposals, set to cost the industry between £7m and £73m a year.

However, the British Hospitality Association (BHA) has warned that the true yearly cost would be nearer £400m, and that the industry needed more time to absorb the impact.

“We believe the consultation paper seriously underestimates the number of people involved, and the cost to employers,” said a BHA spokesman. “There is little doubt that the legislation will go through, but we are saying this is not the right time to do it.”

Last week, the Unite union held a demonstration outside the House of Commons calling on the Government to close the loophole. A YouGov survey of nearly 2,200 consumers, commissioned by campaign group Consumer Focus, revealed that 94% believe all tips “should always go to the staff with no deductions by restaurant owners”.

Len McCluskey, Assistant General Secretary of the union Unite, said: “The Government must ensure employers give a decent living wage, with 100% of tips added on top.”

The Government is already cracking down on employers who fail to pay the minimum wage in full. This week a South Yorkshire hotelier was fined £2,500 for breaching minimum wage legislation. Ahmed Yassine, who runs the Phoenix Hotel, Rotherham, was fined after being found guilty of failing to keep required records and failing to produce appropriate documents when asked by officials from HM Revenue & Customs.