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Tips to be received in full by workers – government review details

3rd May 2016 - 08:53
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Tips to be received in full by workers – government review details
Abstract
The government has outlined plans to ensure workers in the hospitality industry receive tips in full in its newly launched consultation following a call for evidence on tipping practices last year.

The Business Secretary Sajid Javid has revealed plans to end unfair tipping practices and increase transparency for consumers and employees.

He said: “We’ve been very clear. As a one nation government we want workers who earn a tip to be able to keep it.

“That’s why I, like many others, was disappointed by the tipping practices of some of our well-known chains. This has to change.

“I’m setting out our proposals to make tipping fairer, clamping down on unfair practices and securing a better deal for the millions of workers in the service industry. We will look closely at all the options, including legislation if necessary.”

The government aims to ensure that additional payments for service should be voluntary to the consumer; received in full by workers where appropriate; and transparent to the consumer who makes them.

In the call for evidence, worker groups called for a requirement for 100% of tips to be paid to workers. The majority of customers would prefer to see all tips either going to the employee (61%) or shared in a tronc without any employer control (23%). 

In addition the government is considering whether to ban or restrict the levying of table sales charges on staff and how to incentivise and increase the prevalence of well managed tronc systems. 

Written by
PSC Team