Knowledge Centre
19th November 2008
The Government has launched a public consultation on its plans to revise the rules on tipping and the minimum wage.
Under current regulations, some employers have exploited loopholes to include tips when calculating an employee's pay, allowing them to pay less than the minimum wage.
In July, then-Business Secretary John Hutton announced a change to the national minimum wage that would force employers to pay the full amount themselves - a move welcomed by trades unions.
The Government also wants employers to make it clear to customers how their tips will be distributed among staff.
"When people leave a tip they expect it to go to staff on top of their pay, not to be used to make up the minimum wage," said Employment Relations Minister Pat McFadden. "This is an issue of fairness and common sense.
"We... want employers to make it clear how they distribute tips so that customers know where their money is going."
The consultation, which closes on 16 February 2009, takes the form of an online questionnaire.
McFadden added: "It's crucial we get these changes right and we are keen to hear everyone's ideas as part of our consultation."
'Fair tipping' consultation launched
Under current regulations, some employers have exploited loopholes to include tips when calculating an employee's pay, allowing them to pay less than the minimum wage.
In July, then-Business Secretary John Hutton announced a change to the national minimum wage that would force employers to pay the full amount themselves - a move welcomed by trades unions.
The Government also wants employers to make it clear to customers how their tips will be distributed among staff.
"When people leave a tip they expect it to go to staff on top of their pay, not to be used to make up the minimum wage," said Employment Relations Minister Pat McFadden. "This is an issue of fairness and common sense.
"We... want employers to make it clear how they distribute tips so that customers know where their money is going."
The consultation, which closes on 16 February 2009, takes the form of an online questionnaire.
McFadden added: "It's crucial we get these changes right and we are keen to hear everyone's ideas as part of our consultation."
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