Tips, gratuities, cover and service charges: consultation document
- Document type
- Corporate author(s)
- Great Britain. Dept. for Business, Innovation and Skills
- Date of publication
- 2 May 2016
- People management: all aspects of managing people
- Business and management
- Material type
This consultation provides proposals for further action in response to concerns surrounding the treatment and transparency of the payment of tips, gratuities, cover and service charges.
Evidence was sought in relation to practices such as:
- employers charging an administration fee for handling service charges;
- employers keeping the whole of a service charge; and
- employers charging workers a fee based on table sales.
Evidence was also provided regarding the current levels of transparency afforded to both consumers and workers.
The government believes that all discretionary payments for service should be subject to 3 broad policy objectives:
- discretionary – clear to consumers that they are voluntary;
- received by workers; and
- clear and transparent to consumers and workers in terms of how the payments are treated.
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