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| Tipping abuse: Government investigates need for new code of practice after restaurant service charges used for 'admin costs' | Tipping abuse: Government investigates need for new code of practice after restaurant service charges used for 'admin costs' |
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| The Business Secretary, Sajid Javid, has announced a new investigation into how restaurants use the tips left by customers and whether a new code of practice is required. | The Business Secretary, Sajid Javid, has announced a new investigation into how restaurants use the tips left by customers and whether a new code of practice is required. |
| It comes after it was revealed in The Independent that some restaurant chains were using some or all of the service charge attached to bills for “administrative costs”. | It comes after it was revealed in The Independent that some restaurant chains were using some or all of the service charge attached to bills for “administrative costs”. |
| “When a diner leaves a tip, they rightly expect it to go to staff. In full,” Mr Javid said. “I’m concerned about recent reports suggesting some restaurants pocket tips for themselves. That’s just not right. | “When a diner leaves a tip, they rightly expect it to go to staff. In full,” Mr Javid said. “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. We want a fair deal on pay for working people and that includes taking action on tipping abuse.” | “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. We want a fair deal on pay for working people and that includes taking action on tipping abuse.” |
| Brasserie chain Côte came under fire earlier this month accused of keeping back its 12.5 per cent service charges on bills from staff waiting on tables, while Pizza Express was criticised for taking 8 per cent of tips paid to staff by credit cards. | Brasserie chain Côte came under fire earlier this month accused of keeping back its 12.5 per cent service charges on bills from staff waiting on tables, while Pizza Express was criticised for taking 8 per cent of tips paid to staff by credit cards. |
| Staff who worked for Côte told The Evening Standard they were then ordered to tell customers they did get a share of the tip. | Staff who worked for Côte told The Evening Standard they were then ordered to tell customers they did get a share of the tip. |
| The company, which owns 72 restaurants, claimed it redistributed the charge to all restaurant employees including chefs and cleaning staff. | The company, which owns 72 restaurants, claimed it redistributed the charge to all restaurant employees including chefs and cleaning staff. |
| The Government inquiry launched will seek information and views from across the restaurant and hospitality trade, with high-profile chefs such as Jamie Oliver and Gordon Ramsay likely to be included, to find out if tipping abuse is widespread and if intervention is required. The Business Secretary, Sajid Javid, said that diners rightly expect their tips to go to staff | |
| Ministers will be looking at whether there should be a cap on the proportion of tips restaurants can withhold from staff for administrative costs and if so what level this should be. | Ministers will be looking at whether there should be a cap on the proportion of tips restaurants can withhold from staff for administrative costs and if so what level this should be. |
| They will also be looking at whether it is necessary to strengthen the voluntary code of practice currently run by the British Hospitality Industry. At present, restaurants can chose to ignore its four principles of transparency and adopt their own tipping practices. | They will also be looking at whether it is necessary to strengthen the voluntary code of practice currently run by the British Hospitality Industry. At present, restaurants can chose to ignore its four principles of transparency and adopt their own tipping practices. |
| According to the Department for Business, Innovation and Skills, research from 2009 found one in five restaurants did not pass tips to their staff, yet the vast majority of customers said they wanted waiting staff to receive tips left for them. | According to the Department for Business, Innovation and Skills, research from 2009 found one in five restaurants did not pass tips to their staff, yet the vast majority of customers said they wanted waiting staff to receive tips left for them. |
| Leading union Unite welcomed the Government plans to investigate tipping abuse but rejected the idea of capping the amount a restaurant can deduct from waiting staff. | Leading union Unite welcomed the Government plans to investigate tipping abuse but rejected the idea of capping the amount a restaurant can deduct from waiting staff. |
| Unite officer Dave Turnbull said: “We are pleased that the Government has woken up to this scandal, but we would ask that they think carefully about an effective solution. | Unite officer Dave Turnbull said: “We are pleased that the Government has woken up to this scandal, but we would ask that they think carefully about an effective solution. |
| “Capping admin fees will simply legitimise the underhand practice of restaurants taking a slice of staff tips and be near enough impossible to enforce. | “Capping admin fees will simply legitimise the underhand practice of restaurants taking a slice of staff tips and be near enough impossible to enforce. |
| “When customers eat at the likes of Pizza Express, they give tips in the expectation that all of it will go to staff and not be pocketed by management. | “When customers eat at the likes of Pizza Express, they give tips in the expectation that all of it will go to staff and not be pocketed by management. |
| “Only last week, Giraffe scrapped its 10 per cent admin fee on tips, joining chains like Restaurant Group and Jamie Oliver’s to play fair with their staff. | “Only last week, Giraffe scrapped its 10 per cent admin fee on tips, joining chains like Restaurant Group and Jamie Oliver’s to play fair with their staff. |
| “Rather than tinkering around the edges, Sajid Javid should be looking to scrap what is effectively a tax by restaurant bosses on money meant for the pockets of hardworking staff. | “Rather than tinkering around the edges, Sajid Javid should be looking to scrap what is effectively a tax by restaurant bosses on money meant for the pockets of hardworking staff. |
| “The principle ought to be that the tips go to those who have earned them, plain and simple. | “The principle ought to be that the tips go to those who have earned them, plain and simple. |
| “The minister needs to understand that the only way forward is the most just way – let the workers keep their tips,” he said. | “The minister needs to understand that the only way forward is the most just way – let the workers keep their tips,” he said. |
| Mr Turnbull questioned who would police any new system introduced as he claimed government agencies currently responsible for regulating the industry were under-resourced. | Mr Turnbull questioned who would police any new system introduced as he claimed government agencies currently responsible for regulating the industry were under-resourced. |