The Government has recently unveiled plans to overhaul tipping practices, which it claims will help around 2 million hospitality staff to top up their income. Even if you have already embraced the voluntary Code of Practice on service charges and tips, you will need to review your practices to ensure your business is compliant. Fortunately, there is no immediate rush as there is no implementation date.
As many staff in the hospitality sector are earning low basic wages, the Government proposes to:
The proposal recognises that we live in a cashless society with 80% of all UK tipping now happening by card. Gone are the days when cash goes straight into the pockets of the staff.
What you will need to do:
Have your say
The Government will be seeking views from workers and employers in relation to the Statutory Code of Practice. Therefore, if you want your voice to be heard, get in touch with the British Hospitality Association or your trade association, and keep an eye open for further updates.
Further background on the proposal can be found in the Government’s response to the 2016 consultation on tipping, gratuities, cover and service charges.