The government has announced plans
of a new legislation that makes it illegal to include tips as
part of the payment of National Minimum Wage (NMW). Employers
will no longer be allowed to use service charges that are processed
through the payroll to bring wages up to the NMW.
Due to rise in October, from £5.52 to £5.73, the
NMW legislation is this year celebrating ten years since its
introduction.
In the UK, it is customary to many people when visiting a restaurant,
or other establishment where a service is provided, to leave
a tip. This money is intended as a gesture of appreciation of
the good standard of service received. The government have decided
therefore, subject to a recent ruling against an employer, tips
should be an additional contribution to a basic wage, rather
than a way of reaching it.
A consultation on the implementation of the regulation will
be launched in the autumn.
Guidance for both workers and employers will be issued following
the consultation to ensure a smooth transition when the regulations
come in to force. This is unconfirmed, but forecast to be some
time in 2009.
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