Unite: Distribute tips fairly
Trade union Unite held a protest outside Pizza Express in Wimbledon on Friday as part of its campaign to ensure restaurants and pubs distribute tips fairly.
Unite has demanded the re-instatement of Pizza Express manager Nabil Guiguis who was dismissed for speaking out over the way staff tips were handled.
Unite is campaigning for a change in the law to close the loophole, which allows employers to use tips to pay the minimum wage.
"I'm sure Pizza Express customers expect that the tips they leave for good service goes to the staff and would be upset that the restaurant are creaming money off the top," said Unite's Dave Turnbull.
"Along with other restaurants it is vital that Pizza Express operate a transparent tips service so customers know that the service charge they leave goes to the hard-working staff."
Naeema Choudry, partner at international law firm Eversheds, warned using tips to make up pay is an area of concern under employment law.
"Service charges, tips, gratuities and cover charges can count towards national minimum wage pay if they are paid to the worker via the employer's payroll and the amounts are shown the employee's payslips," she said.
"However tips and other gratuities paid by customers directly to the worker and not through payroll cannot count towards the national minimum wage.
"This includes tips that are collected in a pool or 'tronc' and then distributed to staff (unless the tronc money is passed to the employer and then paid through payroll).
"If employers are making such deductions, it could mean that their staff are, in fact, not receiving their entitlement under the national minimum wage legislation and employers could be unlawfully underpaying their staff."
