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Restaurants banned from withholding staff tips

View profile for Reggie Lloyd
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Restaurants banned from withholding staff tips

Some well-known restaurants have been criticised for keeping tips left for their staff by customers.  

Because most transactions nowadays are made by card, some employers apply an “administrative charge” for processing a service charge when it is paid by credit or debit card. Currently, where a tip is paid by card, the employer has the choice to keep it or pass it on to staff, this means some staff receive no tips.

Although a satisfied customer has left a tip specifically for the member of staff who served them, that tip does not always end up in the worker's pocket.

The Government has said that it intends to make this practice illegal, so the person tipped by the customer gets that tip. The Government says it will introduce legislation and a code of practice, which will set out exactly how tips should be distributed fairly, in the next 12 months.

Workers will also have the right to request information from their employer regarding its tipping practices and use that information if they decide to make a claim in the employment tribunal.

If you require any more information on this topic please contact Reggie via or call 01206 217347.