Bosses use tips to skimp on pay

Hoteliers and restaurateurs are continuing to get away with underpaying their staff by using tips to push up wages above the £4.10 minimum wage.

The practice, which is not illegal as long as tips are paid through the PAYE system and appear on salary slips, is widely used. But it has outraged those who are trying to improve the industry's image.

Dave Turnbull, regional organiser for the Transport and General Workers Union, said both staff and customers were being deceived by the system. "The customer thinks they are rewarding them for giving a good service," he said.

According to Turnbull, problems arise when there is a downturn in business or when staff are off sick or on holiday. He said some companies tried to get away with just paying the basic pay.

Anne Walker, managing director of Springboard, which aims to improve the sector's image, was disgusted at the practice.

She said: "It's all right if you get big tips, but if you hit things like 11 September then you can be down to £2.50 or so again."

But Martin Eckersley, finance director at pizza and pasta chain Ask Central, said some of his staff were not on the minimum wage and had their income boosted by tips. He had had no complaints.

by Samantha McClary