Greedy restaurant and pub bosses will be banned from taking their staff’s tips following Cabinet battle
Business Secretary Greg Clark has won his battle to put a stop to the practice and help waiting staff, who currently miss out on thousands of pounds a year in extra wages
RESTAURANT and pub bosses will today be banned from taking any of their staff’s tips after a three year Cabinet battle.
Theresa May will unveil a new law to halt bosses from demanding a share of punters’ generosity to waiters and bar staff.
But the announcement – made at the Tories announcement conference in Birmingham – comes after the idea was first proposed in 2015.
Business Secretary Greg Clark has finally won a long Whitehall fight to insist the move must be mandatory.
Other ministers, lead by the Treasury, opposed the plan and wanted the restaurants to change their ways voluntarily. Some food chains did scrap the practice of scooping a percentage from staff’s tip pot, such as Carluccio’s, YO! Sushi and Pizza Express. But others are still refusing.
Popular high street names Belgo, Bella Italia, Café Rouge, Giraffe, Prezzo and Strada have all in the past demanded a 10% share of their workers’ tips. And the chains Ask and Zizzi have also previously creamed off 8% - depriving the 1.8 million who work in the UK hospitality industry of thousands of pounds a year in extra wages.
Announcing the move in his speech to the Tory faithful, Mr Clark told The Sun: “It is disgraceful that consumers who are giving tips for great service in good faith aren’t guaranteed that it finds its way to hard working staff.”
The move is part of a series of action the Government wants to take to upgrade workers rights and turn around anger with unchecked capitalism.
The Matthew Taylor Review will also see sick pay and holiday pay extended by law to gig economy workers, such as Uber drivers.
Prime Minister Theresa May added: “The unemployment rate under this government is now the lowest since the 1970s – but we want to ensure that everyone is treated fairly in the workplace.
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“That’s why we will introduce tough new legislation to ensure that workers get to keep all of their tips – banning employers from making any deductions. It's another way we are building an economy that works for everyone."
But Labour accused the Government of playing catch up. Shadow Business Secretary Rebecca Long Bailey MP said: "This is now the fourth policy the Tories have copied from us at their conference, as they desperately try to catch up with Labour.
“It's beginning to feel like Groundhog Day.”
Some restaurant chains claim they have now changed their tipping practices.
The Casual Dining Group, who own Café Rouge and Bella Italia, say staff now keep 100% of cash tips and 97.5% of credit card tips, after a 2.5% admin fee is deducted to cover credit card charges.
Zizzi say its rules were changed in November 2015 for 100% of all tips to go to staff after deductions made by HMRC.
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