DTI investigates claims of violating wage legislation

The Department of Trade and Industry (DTI) is investigating a number of hospitality businesses that have been accused by their staff of flouting the minimum wage law.

In four weeks, 85,000 people have called the DTI's helpline with complaints and enquiries. Some 400 calls have been classed as "serious complaints" and 45 companies are under investigation, although not all these are from the hospitality industry.

A DTI spokeswoman said that calls from waiters and other hospitality staff had included "a lot of calls about tips, when they count and when they don't".

Under the minimum wage legislation, tips can be included as part of the wage provided they go through the payroll.

Trade union officials remain concerned over the allowance of tips within the legislation. "It is time restaurants come clean and tell customers that they are subsidising a legal right for the employees," said Dave Turnbull, regional organiser for the Transport & General Workers Union.

Meanwhile, one London hotel manager said this week he had discovered that employment agencies providing him with staff were knocking £15 a week off each worker's wages. The agencies were telling staff this was because they got free meals provided by the hotel.

But under minimum wage rules, employers are not allowed to deduct money in lieu of meals. The manager, who asked not to be named, said he was paying the agencies £3.60 an hour and the agencies were simply pocketing the £15 deductions for themselves.

by Christina Golding

Kentucky Fried Chicken has denied reports that it has switched from paid to unpaid meal breaks to help pay the minimum wage. A spokesman confirmed that the company had never paid meal breaks. "This is an infuriating misunderstanding. No one is worse off," said a spokesman.