28.09.2021

Paying Tips: "Perhaps I should just mail them the money."

Paying Tips: "Perhaps I should just mail…

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Before delving into the main content of this article, I would like to take you back to Sir Alfred Hitchcock’s classic film, To Catch A Thief (1955), which addressed the topic of and prejudices surrounding tipping in a minor way.

Elegant socialite, Francie Stevens (Grace Kelly) is holidaying with her mother, Jessie (played by Jessie Royce Landis, with her tongue planted firmly in her cheek) in the South of France when the following exchange takes place:-

Francie: “Everywhere you go, you complain about tipping.”

Jessie: “And I shall continue to complain.  I’ve just paid for the privilege….  Perhaps I should just mail them the money.”

The audience, of course, knows that Jessie just doesn’t approve of tipping at all.  She has already paid for a service and she doesn’t think that she should pay anything extra for that service.

However, what if she doesn’t like tipping because she doesn’t think that the money will actually go to the person physically providing that service?

 

Well, new proposed legislation seemed poised to repair that problem. 

As part of this:-

  • Workers would be entitled to retain tips that have been paid to them by customers in full, preventing businesses from making deductions from those tips, including administrative charges, but excluding lawful deductions for tax.
  • Employers would need to ensure the fair and transparent distribution of tips, both by ensuring that they have a written policy on tips in place and also that records are kept reflecting how those tips have been paid and who to. For example, the tips could be paid out of a common fund, but employers would need to deal with the distribution of the tips to workers no later than the end of the month after the month in which the customer has made the tip.
  • Workers would be entitled to request sight of the employer’s tipping records referred to above. Employers would have some freedom of choice over the tips-recording system that they use and how they report to their staff, but would have to reply to a request from a worker within four weeks of receiving it.
  • A Statutory Code of Practice on Tipping would be introduced, replacing the Voluntary Code of Practice introduced in 2009, and would have to be respected by employers.
  • Workers would be entitled to enforce their rights under this new proposed legislation in the Employment Tribunal.

 

If this new legislation is passed, it is likely to come into force one year after it is enacted.

Contact me at RHiron@setfords.co.uk or on 01202 076864 if you have concerns about your existing workplace tipping practices.

  • #employmentlaw
  • #smallbusiness
  • #payments
  • #money
  • #employee policy

How secure are you that your staff are meeting the needs of your business?  Are you taking on employees or are you exploring different ways of engaging staff?

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