Business Secretary launches investigation into abuse of tipping
Sajid Javid is looking into reports of fast food chains withholding tips from staff.
Recent media reports into the practice of major restaurant chains found the companies withholding a proportion of tips left for staff to cover administrative costs.
Javid said that this would be something that the government would take a serious look at and now he has ordered a formal call for evidence on the issue.
“When a diner leaves a tip, they rightly expect it to go to staff. In full. I’m concerned about recent reports, suggesting some restaurants pocket tips for themselves. That’s just not right.”
“I’ve ordered an immediate investigation to look at the evidence and consider the views of employees, customers and the industry to see how we can deal with the abuse of tipping.”
“As a one nation government we want a fair deal on pay for working people and that includes taking action on tipping abuse.”
The call for evidence will look at how restaurants treat tips left by customers and whether government intervention is necessary to strengthen the voluntary code of practice run by the industry.
The inquiry which will seek information and views from the hospitality industry and other key stakeholders and will consider whether there should be a cap on the proportion of tips restaurants can withhold from staff for administrative costs and, if so, what this level should be.
