ITV News, The Guardian, City AM, The Daily Express and various other local titles quote Michael Powner on the Tips Act
min readA new law has come into force meaning staff must be given 100% of all tips or service charges.
If an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.
The statutory code of practice, which outlines the requirements for employers under the new legislation, states they will need to distribute tips in a “fair and transparent manner” and pass on all tips and service charges to workers without deductions.
Michael Powner, Employment Partner, says that whilst the Act is welcome news for employees, more guidance is needed for employers. For example, many restaurants are finding it difficult to agree the terms of a “fair” share of tips.
Mike discusses the new legislation on ITV Evening News, and comments in a range of media publications, including but not limited to The Guardian, City AM, The Daily Express and Birmingham Mail.
Mike says:
Restaurants are having consultations with staff with a view to reaching agreement as to what the staff consider to be fair and that is often a difficult process. Employers need to ensure that what is agreed is “fair” and that there is rational reasoning is in place, whilst avoiding any potentially discriminatory rules; difficult areas are for example as to whether payments of tips should be shared with those on maternity leave or sickness absence and if so, for how long.
Related coverage:
City AM, The Guardian, ITV News, Daily Express, Birmingham Mail, Manchester Evening News, Yorkshire Live, Bristol Post
