Good News

Under the legislation, companies will no longer be able to use tips or service charges to make up a minimum salary.

In the past, some companies had paid workers below the minimum wage and used tips to make up the difference. The British Hospitality Association estimates that up to 20% of all restaurants were doing exactly that. BBC.

Bad News

Many restaurants add service to bills as a supposedly “discretionary” charge for service – a practice that can add 10%-15% onto your bill – although in practice, diners hardly ever refuse to pay this, even if they are unhappy with the service.

From now on, workers will not automatically be granted a share in any service charge. While tips must be passed to staff, under the law, an establishment can opt to keep the whole service charge for itself. BBC.

As always if you want to make sure staff get your tip – leave cash and don’t pay the service charge.