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Government consultation on tipping, gratuities, cover and service charges

New plans to end unfair tipping practices and increase transparency for consumers and employees were announced today. Following a call for evidence on the tipping practices in the hospitality, leisure and service industry last year (2015), the government has launched a consultation on its proposals to secure a fairer deal for workers. The consultation paper reflects the evidence received from consumer, worker and employer groups, and sets out the government’s proposals for the handling of tips and service charges. They include: updating the current voluntary code of practice and putting it on a statutory footing to increase employer compliance; increasing transparency for consumers to make it clearer that suggested discretionary payments for service are discretionary and that consumers are free to choose; and preventing or limiting any employer deduction from discretionary payments for service, except for those required under tax law. The closing date for comments is 27 June 2016

Link to news release
Link to consultation paper
Category: Employment » Remuneration. Keyword(s): Tips and gratuities. Area(s) of law: Employment.
Source: Department for Business, Innovation and Skills.

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