New Legislation to Protect Hospitality Workers’ Tips and Service Charges
Restaurants, taxi firms, and hotels are facing a dilemma as new legislation comes into effect this week, banning the withholding of tips and service charge payments from workers. The law aims to boost the earnings of hospitality staff and prevent companies from deducting money meant for workers. Some businesses have already adjusted their tips policy, while others are using the service charge to increase their profits.
However, businesses struggling with higher costs may have to recoup expenses by raising prices or cutting costs. Lawyers warn that agreeing on a fair share of tips can be challenging, especially when considering issues like maternity or sickness leave. Unite union is monitoring businesses to ensure fair tipping policies are in place.
Some workers are concerned they may lose out due to the new rules. For example, Pizza Express has adjusted its tip-sharing policy, leading to a reduction in waiters’ share of the tips to accommodate salaried managers. These changes are being closely monitored, with reviews planned to ensure fairness.
The legislation aims to protect workers’ rights and ensure fair treatment when it comes to tips and service charges in the hospitality industry.
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