Unions blast new tronc guidance

01 June 2006
Unions blast new tronc guidance

Unions have attacked the latest tronc guidance from HM Revenue & Customs, branding it unfair to hospitality staff.

The "clarification" released last month by the Revenue appears to indicate that businesses can avoid paying national insurance contributions (NI) by making employees' wages up entirely through tips.

But union representatives fear staff will not have enough overall contributions to be eligible for state benefits and pensions as a result.

Dave Turnbull, regional industrial organiser at the T&G union, said: "It makes a mockery of the minimum wage if the hospitality industry is allowed to use tronc to pay wages and not pay national insurance."

Paul Kenny, GMB general secretary, said: "This could legitimise the theft of money intended by the customer as an additional payment to staff who have served them well."

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking