Government To Ban ‘Tips As Wages’

(Press Association) – THE GOVERNMENT IS TO BAN the practice of using tips to make-up an employee’s wage to the legal minimum from October.

The announcement is the Government’s response to a consultation on the use of tips, gratuities, service and cover charges in payment of the national minimum wage.

Employment 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.

‘Our consultation showed wide support for these changes, including from business groups, and we are working with them to ensure that consumers get the information they need.’

… (12/05/2009) – Minimum Wage Rises To £5.80 From October

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One Response

  1. […] news of the increase comes shortly after the government said that, from October, employers would be banned from using tips and service charges to ‘top up’ staff pay to meet the minimum […]

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