The government has, this morning, launched a consultation on proposed amendments to the minimum wage legislation.
Currently, where tips and gratuities are given directly to workers by customers and are retained by the workers without any other party being involved, they cannot count towards NMW payment. Where service charges, tips, gratuities and cover charges, are paid by the employer to the worker via the payroll then the tip can count towards national minimum wage pay (currently £5.73ph for adults).
The government proposes to amend the legislation so that tips can never count towards payment of the minimum wage. It will also require restaurants to make it clear how they distribute tips so that customers know where their money is going.
According to the Press Release issued at 8am this morning, the consultation paper is due to go up here. But the link isn't working at the time of sending this bulletin.