Back in September, the UK government revealed a new plan to overhaul tipping practices. With the aim to help around 2 million people top up their income within the hospitality sector. There are on average 190,000 businesses within the hospitality, leisure, and service sectors where tipping is common practice. Across the UK, many hospitality workers earn the National Minimum Wage or National Living Wage and often rely on their tips for a financial boost.
Graham Griffiths, Director of the Living Wage Foundation, stated “Any move to improve pay in low-paid sectors like hospitality is welcome, but if this work is to be truly valued, we need to see more people lifted onto a real Living Wage. We all need a wage that meets our everyday needs, but too many people are stuck on pay that leaves them struggling to stay afloat. To build a stronger and more dynamic economy our focus should be on increasing the number of businesses doing the right thing and committing to pay a Living Wage.”
Research has shown that many companies add a discretionary service charge to customers’ bills. However, then keep part of this for the business rather than passing it to their employees. This has sadly only increased in correlation to a cashless society. It was found that 80% of all UK tipping now occurs via card payments. This then leaves businesses with a choice of keeping it or passing it on to staff.
Overhauling Tipping Practices
The government’s new plan will make this illegal and will ensure customers know tips are 100% going to staff, “ensuring workers receive a fair day’s pay for a fair day’s work” The new law will be added to a range of measurements already in place to protect and enhance workers’ rights.
Paul Scully, Minister for Small Business, Labour Markets and Consumers commented “Unfortunately, some companies choose to withhold cash from hardworking staff who have been tipped by customers as a reward for good service. Our plans will make this illegal and ensure tips will go to those who worked for it. This will provide a boost to workers in pubs, cafes, and restaurants across the country, while reassuring customers their money is going to those who deserve it.”
The new legislation will include:
- requirement for all employers to forward tips to staff without any deductions
- a Statutory Code of Practice which sets out how tips should be distributed, ensuring fairness and transparency
- new rights for workers to make a request for information relating to their boss’s tipping record
If an employer breaks any of the rules, they can then be taken to an Employment Tribunal. Their employees can then be forced to compensate workers, often in addition to fines. However, this would only happen if a staff member opened a case.
Lindström Provide To The Food And Hospitality Sector
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Suitable for all company sizes, our service includes everything you need for workwear management saving you time and money. Having to only pay for the number of employees you have this bespoke service is flexible to your requirements.
Safety And Hygiene Of Workwear
Within the hospitality sector, avoiding bacterial cross-contamination is vital. Hygienic workwear is a must however, clean workwear does not guarantee its hygiene. General workwear cleaning is the removal of visible dirt. However, hygienic workwear cleaning also eliminates invisible dirt, bacteria, and other pathogens. At Lindstrom, we ensure all workwear is hygienically cleaned to the highest standard. With the use of high temperatures and disinfecting washing chemicals to remove all pathogens for the garments.
How Lindström can help
No matter what industry we have your workwear covered, for instance, hospitality workwear, mechanic uniforms, builder workwear, garage, or corporate workwear we can help you. Including specialised clothing for instance antistatic, fire and flame retardant, hi-vis and waterproof workwear. Contact us today to discuss your workplace needs and requirements we will be happy to help and advise.