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Welcome to this monthly Accounting News bulletin from DG Accountancy Services (http://www.businessbods.co.uk) bringing Small Business' news and information from the business world, as it happens!

 

 

Monday, 25 May 2009

Government to ban using tips to make up staff wages

The Government is to ban employers from using tips to bring workers' wages up to national minimum wage levels, with effect from October.

The measures follow a consultation on the use of tips, gratuities, service charges and cover charges to pay the minimum wage.

The Government is calling for greater transparency and clarity for customers in bars and restaurants, by means of a new code of practice.

Employment Relations Minister Pat McFadden said, 'When people leave a tip for staff, in a restaurant or anywhere else, they have a right to know that it will not be used to make up the minimum wage'.

'This is a basic issue of fairness. We do not believe employers should be able to use tips meant as a bonus for staff to boost pay levels to the legal minimum.'

posted by The Editor @ 05:31


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