Government launches consultation into tipping practices

Gaëlle Laforest

03 September 2015

How much of the tips left by customers actually makes it into your pocket? That's what the Government wants to know, via a consultation on tipping practices open on their website until November.

This follows multiple reports in the past few weeks about some companies deducting fees from tips left by customers. This isn't unlawful - employers simply follow a voluntary code of practice, meaning there is no way to control how large a chunk they claim.

Business secretary Sajid Javid, who launched the investigation, said: 'When a diner leaves a tip, they rightly expect it to go to staff. In full. I’m concerned about recent reports, suggesting some restaurants pocket tips for themselves. That’s just not right.

'I’ve ordered an immediate investigation to look at the evidence and consider the views of employees, customers and the industry to see how we can deal with the abuse of tipping. As a one nation government we want a fair deal on pay for working people and that includes taking action on tipping abuse.'

The call to evidence aims to find out how hospitality businesses treat tips, and whether government intervention is needed to regulate tipping practices. Members of the hospitality industry are invited to submit evidence on how service and cover charges, tips and gratuities are handled by employers. The consultation is open until 10 November, 11:45pm.

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