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Employment Cost

Coalition shelves plans to ensure restaurants pay staff their tips

Restaurants were accused yesterday of exploiting a loophole in a new law designed to ensure that staff receive the tips left by customers. In 2008, the Labour government bowed to The Independent's "fair tips" campaign by banning employers from counting tips towards the national minimum wage.

More headlines

Victory for fair tips campaign as ministers act

The Government is to outlaw the practice under which restaurants pay staff less than the national minimum wage and make up the rest in tips, following The Independent's "fair tips, fair pay" campaign.

Tipping: Your views

"I think it's appalling that they've issued a memo recommending that customers pay electronically. I just left a cash tip in any case – it's always the safer option. The whole point of a tip is that it is performance-related. I want to be sure that the money I leave goes straight to my waiter.