Although all workers are entitled to receive the National Minimum Wage (NMW), bars and restaurants currently operate a wide variety of practices when it comes to dealing with tips and it depends how these are paid as to whether they are taken into account as remuneration contributing to the NMW.
Earlier this year, the Government announced that it wished to end the practice of employers paying staff an hourly rate below the NMW and then using gratuities and service charges processed through the payroll to 'top up' wages in order to comply with the NMW legislation.
A consultation has now been launched inviting comments on proposed amendments to the law that will ban employers from using any tips or service charges towards payment of the NMW.
When announcing the move, Employment Relations Minister, Pat McFadden, said, "When people leave a tip they expect it to go to staff on top of their pay, not to be used to make up the minimum wage. This is an issue of fairness and common sense."
In addition, employers will have to make it clear how they distribute tips so that customers know where their money is going.
The consultation closes on 16 February 2009 and can be found at http://www.berr.gov.u k/consultations/page48902.html
The NMW for adult workers is now £5.73 per hour, the rate for 18-21- year-olds is £4.77 and the rate for 16- and 17-year-olds is £3.53 per hour.
 |
 |
 |
 |
 |
 |
|
