Tips and National Minimum Wage
There have been important changes in the law which means that at
last thousands of workers in hospitality, leisure, service sectors,
casino workers and any job where tips are given as a reward for
good service will not have their tips counted against their wages
by their employers.
What’s changed?
From 1 October 2009, following years of pressure by the GMB and
the trade union movement to close a loophole in the National
Minimum Wage, regulations they have been amended so that employers
can no longer use money left in tips and gratuities to make up
wages to the National Minimum Wage.
ALL employees should now expect to be paid at least the National
Minimum Wage (currently £5.80 an hour for an adult worker) and then
receive tips on top of this.
The Government wants to promote good tipping practices and give
greater transparency to consumers, employers and workers. They have
issued a Code of Best
Practice to provide consumers and workers in the tipping
sectors (including Casino gaming staff) practical guidance on how
to operate a fair and transparent tipping policy and ensuring that
consumers are clear about what happens to their money.
Some employers are ignoring this – and some are even threatening
employees who ask about their policies with dismissal. Many
customers are ignorant of the new rules, so the GMB is setting out
a checklist in the GMB Consumers/Workers
Charter on Tips.
Government Awareness Campaign "Who Gets the Tip?"
Government
information
NEW!! There are now mutli-lingual leaflets
available: Welsh
Portuguese
Urdu
Polish
Lithuanian