Tips to top up minimum wage banned

A change in law from October will stop bars and restaurants using tips and service charges to bring staff pay up to minimum wage.The government says it will also be working towards greater transparency and clarity for consumers by introducing a new industry code of best practice.

The announcement comes after a consultation on the use of tips, gratuities, service charges and cover charges in payment of the national minimum wage. Employment relations minister Pat McFadden says: “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...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.”

Derek Simpson, joint general secretary of the union Unite, said: "Hardworking waiting staff will be delighted to learn that bad employers can no longer line their pockets with the money that customers intended to go to workers."