Service charges can no longer be used to make up the minimum wage. Andy Allen asks whether this is a victory for staff
Publication date:
18 September 2008
Source:
People Management magazine
Page:
14
After a long time in the shadows, the issue of how tips are distributed to restaurant staff has shot to prominence. The government announced last month that eateries would no longer be able to use service charges to make up a worker’s minimum wage.
As Eliza Nash, employment solicitor at law firm Speechly Bircham, says: “People would say this practice is unfair. The minimum wage is not meant to be made up using something given at customers’ discretion.”
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