BIS is calling for evidence on how tips, gratuities and service charges are collected and what deductions are made from them by the employer.
At present, tips paid in cash to the employee belong to the employee, whereas tips paid to the employer are the property of the employer, and it is simply a matter of what is agreed between employee and employer that governs whether it needs to be paid over. Tips and gratuities do not count for national minimum wage purposes.
The Government is seeking evidence on how tips work in practice including tronc systems, charges levied on staff as a percentage of their sales, or an administration charge. It also seeks views on what the Government can/should do to improve the practice of employers.
Responses are due by 10 November 2015.
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