Tips and gratuities

The payment of tips, gratuities, cover and service charges is prevalent in a number of sectors, including hospitality and the restaurant business.

UK employment law provides that payments paid by the employer to the worker representing amounts paid by customers by way of a service charge, tip, gratuity or cover charge cannot be used to make up the national minimum wage.

If an employee’s basic pay is at the national minimum wage level, any tips paid through the employer’s payroll must be paid in addition to the employee’s basic pay.


restaurant tips law

Will the Government’s planned restaurant tips law end unfair tipping practices?

Plans to increase transparency for consumers and employees in relation to tipping have recently been announced by the business secretary,...

Eye Ubiquitous/REX

Restaurant tipping practices face regulation

3 May 2016

Service charges that are automatically added to bills in restaurants could be a thing of the past under government plans...

Continue Reading Comments { 0 }
gratuities-and-service-charges-pizza-express

Tipping point: where employers stand on gratuities and service charges

10 Nov 2015

Big-name restaurants have come under attack recently for their unfair tipping policies, ranging from allegations that management take a percentage...

Continue Reading Comments { 0 }
Eye Ubiquitous/REX

Restaurant tipping practices to be investigated

1 Sep 2015

Business secretary Sajid Javid has launched an investigation into the abuse of restaurant tipping, following media reports of hospitality employers...

Continue Reading