From October 2009, Employers will no longer be able to use tips to make employees’ pay comply with minimum wage levels.
This follows extensive consultation on the use of tips, gratuities, service and other charges in topping up pay levels to the minimum wage. The government sought to ensure all employers will pay minimum wage levels and consumers can be confident that tips and service charges are not being used to bring staff pay up to minimum wage levels but as a bonus.
Consumer groups and businesses have welcomed the measure and the general feeling is that tips should be treated as bonuses to motivate employees to provide good customer service and not as a means to top up pay that is lower than the minimum wage.
If you would like more information on minimum wage levels or employment contract terms for wages and other benefits, please contact either Ashley Hunt or Vaishali Thakerar on 0116 212 1000 or complete one of the on-line forms.
