Hard Rock Cafe London - Low Paid

spiro

I was shocked to discover last week that those in the services industry (waiting staff etc) are exempt from the minimum wage on the basis it is made up with tips. One of those mentioned was the Hard Rock Cafe in London. I for one will try and avoid places that expect the customer to pay the staffs wages by way of tips. Sound like another UK employer optout like there was when they introduced 20 days paid holiday, it took years before that was 20 days plus public holidays as it was in the rest of europe.

Hope this is the right forum for this, can we set up a name and shame thread for employees that do this?:mad:

lynzpower

is that even legal? I thought the whole point of the minimum wage was that that is the minimum ANYONE can get paid!

Oops seems I was wrong
Tips and the NMW

Your employer can use your tips to make up your wages to the NMW. If they do, they must pay your tips through their payroll with your wages.


http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10026509



Im staggered

spiro

lynzpower wrote: »

is that even legal? I thought the whole point of the minimum wage was that that is the minimum ANYONE can get paid!

Oops seems I was wrong
Tips and the NMW

Your employer can use your tips to make up your wages to the NMW. If they do, they must pay your tips through their payroll with your wages.


http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10026509



Im staggered

So amI staggered, hence I would love to be able to name/shame those that do. I will also be writing to my MP.

Altarf

If they use the tips to pay the minimum wage, is there any point in leaving a tip?

If you do, then they use it to pay the minimum wage, if you don't then they still have to pay the employee minimum wage, but they have to take it out of their profits.

marleyboy

Agree with the above post.. I only do courtesy tips, not top up fees. ANY chain I hear uses tips to pay the staff, I will boycott.

hollydays

Altarf wrote: »

If they use the tips to pay the minimum wage, is there any point in leaving a tip?

If you do, then they use it to pay the minimum wage, if you don't then they still have to pay the employee minimum wage, but they have to take it out of their profits.

Agreed, and I would like to know which companies do this too.

marleyboy

I think we should have a name n shame thread of ALL the companies that are doing this with tips. shame this fat greedy urchins into paying the staff what is not only legal entitlement, but MORAL.

Mark7799

I never add tips to the bill, I always make a point of giving cash to the waiter/ess. I know that there are other people involved in the preparation/delivery of the meal but in this way the waiting staff have control what happens to the tip, not the management.

trisontana

spiro wrote: »

I was shocked to discover last week that those in the services industry (waiting staff etc) are exempt from the minimum wage on the basis it is made up with tips. One of those mentioned was the Hard Rock Cafe in London. I for one will try and avoid places that expect the customer to pay the staffs wages by way of tips. Sound like another UK employer optout like there was when they introduced 20 days paid holiday, it took years before that was 20 days plus public holidays as it was in the rest of europe.

Hope this is the right forum for this, can we set up a name and shame thread for employees that do this?:mad:

The Daily Mirror and the Unite union are already on the case :-

http://blogs.mirror.co.uk/investigations/2008/07/victory-for-mirror-and-unites.html#more

As you can see, it looks as though the law will change very shortly.

sooz

Mark7799 wrote: »

I never add tips to the bill, I always make a point of giving cash to the waiter/ess. I know that there are other people involved in the preparation/delivery of the meal but in this way the waiting staff have control what happens to the tip, not the management.

This is much better than adding it to your debit/credit card bill, but even then in some places the management insist that all tips are put into a communal pot & 'shared' (with the greatest 'share' going to the management)

Bamber19

They're not exempt from the minimum wage rule, they still msut be paid National minimum wage, it's just that these companies choose to pay part of the wages with the tips they have been given. If they have a bad week and get no tips the staff will still be paid at least minimum wage. Saying they are exempt from minimum wage rules is misleading and would suggest that on a bad week for tips a waitress may get paid £1 per hour, this is simply not true, she would get paid her normal wage, it's just a question of where the cash came from. I don't agree with this method btw, but then I do find tipping to be a strange system, we tip the person who carried our food but not the person who cooked it? If you have a good meal it is normally down to the chef not the waitress.