Government to close loophole on tips

16 July 2008 by
Government to close loophole on tips

The Government is set to close the loophole that allows restaurants to use tips to make up the minimum wage, it was claimed today.

The Daily Mirror newspaper, which has been campaigning on the issue alongside the Unite union, reports that Gordon Brown will announce plans to change the rules on the 10th anniversary of the minimum wage later this month.

The issue has been in the public eye for a number of months, and was brought into sharp focus when The Independent newspaper launched its own campaign yesterday.

The Government begins a 30-day consultation on its plans next month, according to the Daily Mirror.

Len McCluskey, Unite assistant general secretary, said: "We are pleased the Government has finally recognised the need for action on tips and service charges.

"We welcome the decision by the Prime Minister to ensure that the principles of the minimum wage legislation are not betrayed by the practices of some employers who are solely interested in making a fast buck.

"There is now the opportunity for the Government to clean up the system and give consumers confidence that when they eat out the staff who serve them are being treated fairly."

In April, Business Secretary John Hutton confirmed that the Government was "looking seriously" into the issue of staff tips.

Government looking at taking direct action on restaurant tips >>

Union leaders launch campaign for fair tips >>

Tips can count towards minimum wage, finds tribunal >>

By Daniel Thomas

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