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Government Investigation into Tipping

PLEASE NOTE: Information in this article is correct at the time of publication, please contact DFA Law for current advice on older articles.

The Business Secretary, Sajid Javid, has launched an investigation into abuse of tipping, as part of the Government’s initiative to make sure workers are paid fairly.

The announcement follows recent media reports that some major restaurant chains are withholding a proportion of the money left by customers for waiting staff in order to cover administrative costs.

The consultation seeks information on current practice in relation to tips, gratuities, cover and service charges and also welcomes views on the Government’s role in improving practice in this area. It will then decide if action is needed to ensure that employers do not withhold from tips anything other than credit card administration and payroll charges.

The consultation closes on 10 November 2015.

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