Service charge code of practice published

A new voluntary code of practice is urging restaurants to be more open with customers about discretionary service charges and tipping practices.

The code, published by The British Hospitality Association (BHA), states that an establishment's service charge practices should be outlined in a written note available at the restaurant, and on its website if there is one.

The BHA says that this should cover how much is deducted for handling costs - such as card charges - and explain how the remainder is shared between the restaurant and employees.

The BHA said that a previous vacuum of information about service charging and tipping practices had "damaged the industry's reputation".

Bob Cotton, BHA chief executive, said: "If we can ensure that every restaurant accepts and adopts the code, the industry will have done much to reinstate its reputation.

"We must put behind us all the critical comments the industry has had to endure in the last year."

On 1 October, new legislation will be introduced which bans the service charge being used to make up the National Minimum Wage.