NEWS
01/10/2018 07:53 BST | Updated 01/10/2018 09:01 BST

Restaurants To Be Banned From Taking Workers’ Tips

Some businesses take up to 10 percent of the extra cash earned by workers.

Simon Battensby via Getty Images

Restaurants will be banned from taking a cut of their workers’ tips, Theresa May is set to announce.

High street chains Bella Italia, Cafe Rouge are among those who have been criticised for taking 10 percent of tips earned, while Ask and Zizzi have both previously deducted eight percent - but under new legislation, they will no longer be able to do so. 

In an announcement on Monday, the prime minister will say: “We want to ensure that everyone is treated fairly in the workplace.

“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.”

May added that “the change is part of the government’s drive to back businesses to create good jobs while making sure the system works for ordinary people”.

“It is in addition to the introduction of the National Living Wage, which when it was introduced increased the wages for roughly a quarter of the workers in the hospitality industry,” she said. 

On Sunday afternoon, Business Secretary Greg Clark had hinted that an announcement on this topic was coming.

Speaking at an event hosted by HuffPost UK, he said workers could expect the government to crack down on restaurants sooner rather than later.

“I do share the concerns that what is given to a waiter or waitress doesn’t go to to the person - even though the person leaving the tip think it has,” he said. 

Proposals of this kind were first announced by Sajid Javid back in 2016, but as the BBC reports, he did not push forward with any legislation.

Unite regional officer Dave Turnbull has welcomed the news, arguing that “this step in tackling tipping abuses has been a long time coming”.

“Unite will be seeking assurances from ministers that the legislation the government introduces truly delivers fair tips for some of the lowest paid workers in the UK and that it is done so in a timely manner,” he adds.

An announcement on when the legislation will be drafted and implemented is expected in due course.