In October 2018, the UK government announced that legislation will come into force to ensure that tips left for workers will go to them in full. This would prevent restaurants from taking deductions from tips paid by credit and debit card. This action follows a government consultation in 2016, on tipping, gratuities, cover and service charges of which no findings have been published. The consultation arose because it was revealed that many high street restaurant chains were withholding up to 10% from tips paid by credit and debit card.
Following the announcement late last year, it has now been revealed that the government will once again push back plans to legislate restaurant tipping with action unlikely to be taken until the next parliamentary session.
If action is taken, the hospitality industry should not fear these changes. Most are willing to actively address a major concern for workers in the hospitality industry, around the engrained lack of transparency regarding what happens to the money that is tipped to staff by customers. It is accepted that when customers are generous enough to tip servers, it is to reward restaurant staff and show their overall satisfaction with their dining experience. The problem for the hospitality industry is finding the best way to do this, that is ethical and fair, and show their commitment to their employees.
How can we help?
At Buzzacott, we help businesses in the hospitality industry champion giving their employees a fair share of tips - what better way to show this than with a clear and fair tipping tronc system?
A well-considered tronc scheme lets staff have up to 100% ownership of tips that are shared out in a way that’s fair, transparent and free of bias.
Furthermore, having an independent tronc scheme helps businesses conform to HMRC requirements, qualifies for exemptions from National Insurance, helps staff feel valued increasing their likelihood to stay with a business and allows transparency so all the relevant stakeholders know who and what amount is being tipped.
For further information regarding tronc schemes or the article above, please contact Mark Taylor on +44 (0)20 7556 1243 or alternatively, please complete the form below: