Changes to the law affecting tipping

Changes due to come into force next year will prevent employers from using tips and service charges to top up staff pay in order to comply with the minimum wage regualtions. People working in restaurants, in particular, will benefit.

The change has been welcomed by Trade Unions who label the current practice by some employers as an abuse.

Derek Simpson, joint leader of the Unite union said, "It is great news that unscrupulous employers will no longer be able to use the tips left for staff to subsidise low wages."

The Unite union intends to introduce a Fair Tips logo in bars and restaurants across the UK - showing that staff receive at least the minimum wage as well as all tips. 

 John Hutton, the Business Secretary, said there needed to be more transparency in tipping and called on employers to make it clear how tips were distributed so that customers knew where their money was going and whether or not the establishment operated a fair tipping policy.

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