Under recent proposals from the Government all tips received from customers will have to be passed on to the staff and businesses will not be able to take deductions.
Some businesses take deductions from workers for tips received by customers. This is not against the law but is seen as distasteful by many including the workforce.
Under new proposals announced by the Government this is likely to change and all tips received from customers will need to be passed on to workers. Though there is currently no fixed timescale or detail of the measures to be introduced it is prudent for restaurant/catering businesses to take steps to evaluate current practices on tips. The aim of the change will be to reward workers for their hard work in serving customers well.
Effects on the business mean a reduced profit once the restrictions are effective and consequently a review of where this shortfall could be made up will be needed.