Restaurants will be legally barred from keeping tips from staff under plans to be announced by Theresa May on Monday. High street chains including Prezzo, Strada and Zizzi will be forced to pass on all service charges to workers, the prime minister said.
The move follows a public outcry over the practice by some restaurants of skimming off a share of tips. Labour said the government had copied another of its policies, which the party announced in June.
Jeremy Corbyn said a Labour government would legislate to ensure workers keep 100% of their tips, putting an end to practices that has seen tips deducted by some businesses. Mrs May said the “tough” legislation, which would apply in England, Scotland and Wales, was part of the government’s push to end exploitative employment practices. Her vow comes three years after a government consultation found restaurant customers overwhelmingly supported tips going to waiting staff, rather than proprietors.
Chains including Belgo, Bella Italia, Cafe Rouge, Giraffe, Prezzo and Strada have been criticised for making deductions of 10% from service charges, while Zizzi and Ask have both taken 8%. Workers at TGI Fridays outlets held a series of strikes earlier this year over a new pay policy that redistributes customer tips from waiters to kitchen staff.
There are about 150,000 hotels, pubs and restaurants in the UK, employing about two million people.
