The government has been criticised for failing to take action on tipping abuses.
Workers from restaurant chain TGI Fridays, who have taken four days of strike action over tips and minimum wage abuses, have written to the Business Secretary Greg Clark demanding action on the issue.
Two years ago the government launched a consultation to make the process of tipping clearer for customers and to end unfair practices that reduce the money received by employees. Despite the plans to end unfair tipping practices the government has not progressed with the proposed changes.
The letter from TGI Fridays’ workers, who are part of the union Unite, outlined how the restaurant chain made a decision earlier this year to redistribute 40 per cent of cent tips paid on a card from waiting staff to the kitchen teams – a move they claim is costing waiters £250 a month in lost wages. They believe that the change is about the company clawing back the cost of increases to the national living wage and has left them worse off.
“Despite the government’s well-publicised ‘investigation’ and subsequent consultation into tipping abuses which closed nearly two years ago on 27 June 2016, nothing has been done,” Unite regional officer Dave Turnbull said.
“Rogue bosses like TGI Fridays are being let off the hook to abuse tips and exploit government/HMRC guidelines (E24) on tips and troncs, to boost their own profits and offset the cost of the government’s pay rise to low earners.”
He added that the failure to act is fostering exploitation and industrial unrest. And it is leading to high staff turnover and skill shortages.
“Unite is demanding that the business secretary, Greg Clark, stop dragging his feet and take action on tips,” concluded Turnbull.
