The government today launched a consultation on its proposal to prevent employers from counting tips and gratuities towards payment of the national minimum wage.
The consultation is also looking at how to raise awareness among consumers about what happens to the money they leave as tips.
The consultation is also looking at how to raise awareness among consumers about what happens to the money they leave as tips.
The current legislation (subscription required) allows tips that are paid through the payroll
to count towards the minimum wage.
Launching the consultation, employment relations minister Pat McFadden said: "When people leave a tip they expect it to go to staff on top of their pay, not to be used to make up the minimum wage. This is an issue of fairness and common sense.
"We also want employers to make it clear how they distribute tips so that customers know where their money is going."
This week business secretary Peter Mandelson launched a campaign to make sure workers are aware of their right to be paid the national minimum wage, which increased to £5.73 an hour for adult workers on 1 October 2008. The "It's Your Call" roadshow will tour the UK for three months, visiting 28 towns and cities. It will advise workers on their entitlements and tell them how to complain if they have been underpaid.
The Employment Act 2008 (subscription required) includes new penalties for employers that fail to pay the minimum wage. These penalties, and a new system of calculating payment of minimum wage arrears, are expected to come into force in April 2009.
Launching the consultation, employment relations minister Pat McFadden said: "When people leave a tip they expect it to go to staff on top of their pay, not to be used to make up the minimum wage. This is an issue of fairness and common sense.
"We also want employers to make it clear how they distribute tips so that customers know where their money is going."
This week business secretary Peter Mandelson launched a campaign to make sure workers are aware of their right to be paid the national minimum wage, which increased to £5.73 an hour for adult workers on 1 October 2008. The "It's Your Call" roadshow will tour the UK for three months, visiting 28 towns and cities. It will advise workers on their entitlements and tell them how to complain if they have been underpaid.
The Employment Act 2008 (subscription required) includes new penalties for employers that fail to pay the minimum wage. These penalties, and a new system of calculating payment of minimum wage arrears, are expected to come into force in April 2009.
- IRS has just launched a new survey investigating the actual impact of the national minimum wage on individual businesses.
Whether the minimum wage has forced up your staffing costs, or if it has not affected your organistion, we would like to hear from you.
Taking part in our short, confidential survey ensures that you receive a complimentary copy of the research report as soon as it is available.
Click here to take part.
More information on this and other IRS surveys can be found on the IRS research website.
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