28-10-2011

Businesses must make sure agency workers share in tips from customers

Restaurants, hotels and other employers whose staff are tipped by customers must now make sure that their longer-serving agency workers are entitled to their share when the tips are divided among the workforce.

Tips paid to waiters and other service staff are often put into a common pot, and divided up among the relevant employees – usually according to the number of hours they work. Previously, agency workers have not had the legal right to participate in these arrangements. However, from October 2011, new laws mean they do now have to be included, provided they have worked for the employer for at least 12 weeks.

Recommendation

Businesses whose customers give tips must ensure that qualifying agency workers participate in any pooling and then sharing out of those tips among staff.