Government plan ‘unfair tipping practices’ consultation

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Proposals to end “unfair tipping practices and increase transparency for consumers and employees” have been revealed by the Government.

After a ‘Call for Evidence’ on the tipping in 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.

Business secretary Sajid Javid said: “We’ve been very clear. As a one-nation government we want workers who earn a tip to be able to keep it. That’s why I, like many others, was disappointed by the tipping practices of some of our well-known chains. This has to change. Today I’m setting out our proposals to make tipping fairer, clamping down on unfair practices and securing a better deal for the millions of workers in the service industry. We will look closely at all the options, including legislation if necessary. Underlying all the proposals is our aim that additional payments for service should be voluntary to the consumer; received in full by workers where appropriate; and transparent to the consumer who makes them.”

Currently there is no legal requirement for the treatment of discretionary payments for service regarding the proportions that go to employers and workers.

A voluntary code of practice,  introduced in October 2009, was designed to improve the information available on tips, gratuities, cover and service charges and to increase transparency in this area.

The consultation closes on Monday, 27 June.

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