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'Tips as wages' loophole to close | 'Tips as wages' loophole to close |
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Employers are to be banned from using tips and service charges to "top up" staff pay to meet the minimum wage from October, the government says. | Employers are to be banned from using tips and service charges to "top up" staff pay to meet the minimum wage from October, the government says. |
The change will benefit those working in industries such as restaurants, where tipping is commonplace. | The change will benefit those working in industries such as restaurants, where tipping is commonplace. |
Employment Relations Minister Pat McFadden said that the practice of allowing firms to use service charges to pay staff was unfair. | Employment Relations Minister Pat McFadden said that the practice of allowing firms to use service charges to pay staff was unfair. |
Unions, which have long campaigned for change, welcomed the move. | Unions, which have long campaigned for change, welcomed the move. |
"When people leave a tip for staff, in a restaurant or anywhere else, they have a right to know that it will not be used to make up the minimum wage. It is also important for employers to have a level playing field on wages," Mr McFadden said. | "When people leave a tip for staff, in a restaurant or anywhere else, they have a right to know that it will not be used to make up the minimum wage. It is also important for employers to have a level playing field on wages," Mr McFadden said. |
Derek Simpson, the Unite trade union's general secretary, said that the government was doing the right thing for low-waged waiting staff. | Derek Simpson, the Unite trade union's general secretary, said that the government was doing the right thing for low-waged waiting staff. |
"Hard-working staff will be delighted to learn that bad employers can no longer line their pockets with the money that customers intended to go to workers," he said. | "Hard-working staff will be delighted to learn that bad employers can no longer line their pockets with the money that customers intended to go to workers," he said. |
The Department for Business Enterprise and Regulatory Reform said businesses supported the change. | The Department for Business Enterprise and Regulatory Reform said businesses supported the change. |
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