The government has launched a consultation on its proposals to regulate the tipping of service staff which will run until 27 June 2016.
There is also reported confusion amongst consumers as they are not told how the tips will be distributed, if at all, as currently there is nothing to stop employers refusing to pass on tips to their workers. In addition, many restaurants add a service charge of 10% or 15% to the bill which can lead to “double tipping” where consumers are not aware of this and either leave cash or add a tip when making a payment by card.
The consultation proposes to make it compulsory for businesses to make it clear that customers do not have to pay the discretionary service charge and to regulate payment of tips to workers.
The government’s aim is to make sure that everyone is paid fairly and to provide transparency for consumers, workers and employers.
Further details on the consultation can be found here
. For more information, please contact a member of our Employment Team on 01279 755777.