Tips, gratuities, cover and service charges: consultation document

Tips, gratuities, cover and service charges: consultation document
Document type
Report
Corporate author(s)
Great Britain. Dept. for Business, Innovation and Skills
Publisher
BIS
Date of publication
2 May 2016
Subject(s)
People management: all aspects of managing people
Collection
Business and management
Material type
Reports

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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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