British gov't launches major study into unfair tipping practices

A major study of tipping practices in restaurants and bars was announced Monday by the British government.

It follows concerns by customers as to who receives their gratuities at the end of a meal, with over 80 percent wanting to see their tips go directly to workers or distributed fairly among staff.

The government's Department for Business announced new plans to end unfair tipping practices and increase transparency for consumers and employees.

Options include updating a current voluntary code of practice and putting it on a statutory footing.

Proposals to end unfair tipping practices and increase transparency for consumers and employees were announced on Monday by Business Secretary Sajid Javid.

Following a call for evidence on the tipping practices in the hospitality, leisure and service industry, the government has launched a consultation on its proposals to secure a fairer deal for workers.

A consultation paper reflects on the evidence received from consumer, worker and employer groups, and sets out the government's proposals for the handling of tips and service charges. It includes updating the current voluntary code of practice and putting it on a statutory footing to increase employer compliance.

It also wants to increase transparency for consumers to make it clearer that suggested discretionary payments for service are discretionary and that consumers are free to choose.

The recommendations also include preventing or limiting any employer deduction from discretionary payments for service, except for those required under tax law.

Business Secretary Sajid Javid said: "We want workers who earn a tip to be able to keep it. That's why I, like many others, was disappointed by the tipping practices of some of our well-known chains. This has to change."

"Underlying all the proposals is our aim that additional payments for service should be voluntary to the consumer; received in full by workers where appropriate; and transparent to the consumer who makes them," he added.

A spokesman for the Department for Business, Skills and Innovation, said: "Currently there is no legal requirement for the treatment of discretionary payments for service regarding the proportions that go to employers and workers."

Worker groups have called for a requirement for 100 percent of tips to be paid to workers. The majority of customers would prefer to see all tips either going to the employee (61 percent) or shared without any employer control(23 percent).

The government says it is also considering whether to ban or restrict the levying of table sales charges on staff, a fee paid by waiting staff based on their sales during a working shift.

A recent survey in Britain found that 87 percent of customers always leave a tip, amounting to an average 9 percent of the total bill.

In Britain around two million staff work in the 150,000 businesses in the hospitality, leisure and service sectors where tipping is common. Enditem