fair deal on tips

Fair Deal on Tips and New Minimum Wage Rates

Fair Deal on Tips and New Minimum Wage Rates

New rules come into force tomorrow (1st October) to ensure that thousands of workers get a fair deal on tips and wages. (See Tipping: Code of Best Practice) The changes make it illegal for businesses to use tips to bring staff pay up to minimum wage levels. They come into effect on the same day as new increases to national minimum wage rates which will benefit up to one million people. Business Secretary Lord Mandelson said: “When I leave a tip I don’t expect it to be used to make up the minimum wage. I want it to go to the person who has served me as a thank you for their service. This is a basic issue of fairness. Tips are meant as a bonus – not a tool to boost pay to the basic minimum. “That’s why the Government has closed this legal loophole. Thanks to the... »