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Consultation on Tipping

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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. They include:

- updating the current voluntary code of practice and putting it on a statutory footing to increase employer compliance

- increasing transparency for consumers to make it clearer that suggested discretionary payments for service are discretionary and that consumers are free to choose

- preventing or limiting any employer deduction from discretionary payments for service, except for those required under tax law

In addition the Government is considering:

- whether to ban or restrict the levying of table sales charges on staff – a fee paid by waiting staff based on their sales during a shift

- how to incentivise and increase the prevalence of well managed tronc systems