Restaurants are to be banned from keeping a share of tips given to staff, under news plans announced by Theresa May aimed at ending exploitative employment practices.
According to the government, while some businesses have changed their practices, high street chains such as Belgo, Bella Italia, Cafe Rouge, Giraffe, Prezzo and Strada all deduct 10% from tips paid by card.
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Attempting to steal a march on Labour following a number of major workplace policy announcements at their party conference last week, the prime minister used the start of her own party’s annual get-together to announce “tough” legislation that will apply across the UK.
“It's another way we are building an economy that works for everyone” she said.
Under current law, cash tips are legally the property of staff, and can go straight to the person serving you or be shared out among staff.
Card tips are different, and belong to the owner of the restaurant who has no legal duty to hand any of them over to staff. This also applies to any service charge automatically added to a bill.
“How businesses decide to share these tips out varies widely” says the BBC. “Some keep all the tips while some skim a percentage off the top. Others take a percentage to distribute to back of house staff.”
The promise comes in the government's response to a consultation “and will benefit many of the 1.8 million people who work in the hospitality industry in the UK”, says Sky News.
Unions have welcomed the new legislation, with Unite regional officer Dave Turnbull saying a crackdown on tipping abuses is long overdue. However, he added that “there will be question marks as to whether it will deal with the myriad of scams some restaurants use to pilfer staff tips to boost their profits.”
Labour, meanwhile, has claimed the government’s proposal copies one of its own policies. In June Jeremy Corbyn announced he would legislate to ensure workers kept 100% of their tips if he came to power.