UK unions fear not all employees will receive their fair share as tip-sharing laws come into effect | hospitality industry

Unions are concerned that some restaurants and other businesses could be left out of new laws on fair distribution of tips and service charges that come into effect in England from Tuesday.

The government said the long-planned changes would put workers in line for about 200 million people who would otherwise be retained by their employers.

The new rules state that tips given in cash or by card and all service charges charged to customers must be passed on to staff working in restaurants, cafes, hotels, hair salons or taxi companies.

Justin Madders, Minister for Employment Rights, said: When you tip someone for good service, you expect that person to keep the entire tip. They did something that deserved the reward.

This is just the first step in many steps to protect workers and keep them at the center of our economy. We will introduce additional measures on tips to ensure employees receive tips fairly.

But the Unite union said some on-call staff would be left out of pocket, including those in Northern Ireland, where Stormont executives have yet to table the bill.

Neil Moore, the union's senior regional officer for the hospitality sector in Northern Ireland, said: Stormont's failure to enforce fair gratuity laws has left bosses free to hand tips when it suits them.

Unite’s lead organizer for hospitality workers, Bryan Simpson, added: Unite has been campaigning for this bill for over a decade and we welcome its belated introduction as it will make a huge difference to millions of hotel industry workers. But there are still employers across the country who have already introduced policies that cause workers to lose tips.

He pointed to Miller & Carter, a chain of steakhouses owned by national pub group Mitchells & Butlers, which the Guardian last year revealed was receiving payments worth up to 2% of sales from wait staff at some restaurants.

The payout serves as a way for wait staff to share tips with cooks and other backorder staff.

However, Unite claims the system can sometimes mean that the income earned from tips and service fees is less than the amount owed to fellow workers.

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A spokesperson for Mitchells & Butlers said all tips were passed on to staff. In preparing our new Tipping Code of Practice, our Tipping Policy has been reviewed by independent expert advisors to ensure full compliance with our Tipping Policy.

Our approach under the new Tipping Code of Practice is that our teams agree how tips will be distributed to each business through a democratic and transparent process facilitated by each site General Manager.

They say tip distribution is entirely up to individual teams in each department. [businesses].

Sources 1/ https://Google.com/ 2/ https://www.theguardian.com/business/2024/oct/01/uk-unions-fear-not-all-staff-fair-share-tip-sharing-law The mention sources can contact us to remove/changing this article

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