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Inquiry launched into abuse of tipping Inquiry launched into abuse of tipping
(35 minutes later)
The business secretary, Sajid Javid, has launched an investigation into the abuse of tipping after it emerged that some of the UK’s best-known restaurant chains were withholding service charges from their staff.The business secretary, Sajid Javid, has launched an investigation into the abuse of tipping after it emerged that some of the UK’s best-known restaurant chains were withholding service charges from their staff.
A string of reports in the media over the past month have accused restaurants including Pizza Express, Ask Italian and Cafe Rouge of keeping all or part of the service charges added to bills instead of passing them on to waiters. A string of reports over the past month have accused restaurants including Pizza Express, Ask Italian and Cafe Rouge of keeping all or part of the service charges added to bills instead of passing them on to waiters.
The inquiry, which will run until 10 November, will examine whether or not government intervention is necessary. It could lead to a limit being imposed on the amount of tips that can be withheld from staff, or the naming and shaming of chains who do not pass on tips.The inquiry, which will run until 10 November, will examine whether or not government intervention is necessary. It could lead to a limit being imposed on the amount of tips that can be withheld from staff, or the naming and shaming of chains who do not pass on tips.
Javid said: “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.Javid said: “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.”“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.”
After a public backlash, the restaurant chain Giraffe announced this month that it would remove its service charge and allow all tips to go to staff. Giraffe previously kept 10% of the tips for “administrative and other business costs” but said it had decided to make the change in its mid-year review.After a public backlash, the restaurant chain Giraffe announced this month that it would remove its service charge and allow all tips to go to staff. Giraffe previously kept 10% of the tips for “administrative and other business costs” but said it had decided to make the change in its mid-year review.
Dave Turnbull, regional officer for the Unite union, which is campaigning to stop restaurants charging fees to administer tips, said at the time of the decision: “Waiting staff are among the UK’s worst-paid employees and are reliant on tips to top up their pay. Customers eating at popular restaurants like Giraffe or Pizza Express expect their tips to be paid in full to staff, not skimmed for an admin fee.”Dave Turnbull, regional officer for the Unite union, which is campaigning to stop restaurants charging fees to administer tips, said at the time of the decision: “Waiting staff are among the UK’s worst-paid employees and are reliant on tips to top up their pay. Customers eating at popular restaurants like Giraffe or Pizza Express expect their tips to be paid in full to staff, not skimmed for an admin fee.”