Business secretary Sajid Javid has launched an investigation into tipping, arguing that consumers expect tips to go to staff rather than businesses.
ALMR chief executive Kate Nicholls said: “We agree with the business secretary — it is entirely right that tips and gratuities are passed on to the staff who have earned them. In an increasingly cashless economy, companies inevitably are collecting tips on behalf of their staff, but they should only be doing so in order to redistribute them, and many choose to do so in a way which rewards the hard work and effort of the entire shift, both front and back of house.
“We recognise, however, that there is much confusion in this area for staff and consumers and that not all companies may be acting transparently. For this reason, we are revising and updating the current industry code of practice on tipping to ensure it sets not only minimum standards but promotes best practice and ensures tips, gratuities and service charges are not withheld.”
Licensee Liz Hore, who runs the award-winning Victoria Inn in Salcombe urged fellow publicans to follow her lead and ensure that
tips are distributed fairly.
“If the team work so well that they attract great tips, those tips should be evenly distributed amongst all staff. Our tips are fairly split according to hours worked, not status. They are taxed and given out on a monthly basis,” she told the PMA.
Restaurant chains PizzaExpress and Azzurri Group, operator of Zizzi and ASK Italian, have announced they will stop deducting an 8% administration fee from staff tips that are made by card payments.