Friday 18 July 2003

Minimum Wage - Tips

[A job advertisement for Gotelee & Goldsmith, Ipswich, appears below]

The National Minimum Wage (Tips) Bill has been introduced in the House of Commons.

Its purpose is to correct the anomaly, under the National Minimum Wage Regulations 1999, that:

(a) tips paid directly from customers to staff (such as waiters or hairdressers) do not count as wages for the purpose of the minimum wage; whereas,

(b) if the tips go through the employer's payroll (which often happens when a service charge is automatically added to restaurant bills), those tips do count towards calculating whether the employee has been paid the minimum wage.

The Bill, assuming it is enacted, will amend regulation 31 of the National Minimum Wage Regulations 1999 so that no tips, whether paid directly to the employee or through the payroll, will count as remuneration going towards the minimum wage (currently £4.20ph for adults).

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