Ruling means waiters' tips are classed as wages

Related tags Employment Minimum wage

Waiters have reacted angrily to a European ruling that means some of their tips are counted as part of their minimum wage.Human rights judges in...

Waiters have reacted angrily to a European ruling that means some of their tips are counted as part of their minimum wage.

Human rights judges in Strasbourg ruled that a restaurant was right when it counted tips that were paid by credit cards or cheques, as part of its waiters' minimum wage.

Their decision means that non-cash tips are now legally the property of an employer and can be counted towards a minimum wage. Tips paid in cash are not affected by the ruling.

But waiters have hit out at the decision. They claim any tips earned, no matter how they are paid, should be distributed to staff and they fear the decision could eventually lead to pay cuts in an already poorly-paid profession.

One waitress, who did not want to be named, said: "We earn our tips for good service. It's our money and to know we won't see it takes away a lot of motivation. I just hope this won't mean our wages are cut in the future."

But employers are pleased with the decision and say it clarifies what had been a confusing situation.

Miles Quest, spokesman for the British Hospitality Association, said: "We're pleased the law is now clear and unambiguous. Everyone, both employer and employee now know where they stand."

The Restaurant Association has reassured waiters that little will change, despite the ruling.

The court case was brought by four waiters from London restaurant Paradiso e Inferno. They took their claim to Strasbourg after losing in the High Court and on appeal in Britain.

The restaurant had included any tips left on credit cards or cheques in the waiters' pay packets as "additional pay".

But the waiters sued when they discovered the tips were making up their wages and were not "additional" after all.

They claimed damages because their basic wages, without the tips, had been less than the minimum wage.

But the European court upheld the High Court's ruling that tips that were not paid in cash belonged to the waiters' employer and could count as part of the minimum wage.

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