01/10/2009 - Rules change on tipping loophole
A drive to publicise new rules preventing tips being counted towards the wages of workers in bars and restaurants has been launched.
The rules, which come into effect on October 1, prevent businesses bringing staff pay up to minimum wage by using gratuities.
Lord Mandelson, business secretary, said if customers found out that tips were being used to top-up wages they would be 'amazed'.
He took time out from the Labour party conference to visit a hotel in Brighton, publicising both the rule change and increases to the minimum wage.
The rules touched on "a basic issue of fairness", Mandleson explained.
He added: "Tips are meant as a bonus, not a tool to boost pay to the basic minimum. That is why the Government has closed this legal loophole."
He said closing the tips loophole had the support of business groups as well as consumer groups and trade unions. A code of practice will be published aimed at providing "clarity" for customers and staff as well as businesses.
Copyright © Press Association 2009
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