Can a restaurant employer deduct money from waitresses tables sales for tips?

rach_pach

Hi, I hope someone can help here...my question is on behalf of my niece. She is 20 years and has just got a part time job to supplement her student finances. She has started working for a national restaurant chain and says that for all total sales from bills she make off her tables, they deduct 4% of the total sales figure from her tips. She says this us regardless of whether the table tip or not. Apparently this has had media attention.
My question is, what should she do? She needs the job but it sounds like it might even cost her to go to work sometimes, by the time she's paid for public transport to get there or a taxi home because they have kept her later than when her shift should end. Any thoughts?
Thanks

tomtontom

Assuming it does not take her below minimum wage it is lawful. Immoral, but lawful.

What should she do? Look for another job.

HappyMJ

Is this the UK? Tipping is not expected and UK customers don't tend to tip as much as other countries.

The restaurant must pay minimum wages for all hours worked. They cannot make any deductions to take her gross pay below minimum wages. That includes for losses such as a customer leaving without paying, breakages and also for what you've explained.

The restaurant can keep all tips if they really want but most just distribute a large proportion of them deducting a small amount for administration costs and whatever tax and NI is due to the employee.

Cash tips are usually distributed by the staff members themselves and don't involve the owners/management and as such the employee is responsible for declaring and paying the tax due on the tips.

rach_pach

Thanks for your replies. I have suggested she looks for another job. The bit you both mention about it being lawful so long as it doesn't mean she is paid below thw minimum wage is really helpful. Thank you. When you go to a restaurant and tip the staff (which I always do unless the service has been particularly poor), you don't expect it to go straight to the company. It will certainly make me ask the staff before deciding how I tip in future.

HappyMJ

rach_pach wrote: »

Thanks for your replies. I have suggested she looks for another job. The bit you both mention about it being lawful so long as it doesn't mean she is paid below thw minimum wage is really helpful. Thank you. When you go to a restaurant and tip the staff (which I always do unless the service has been particularly poor), you don't expect it to go straight to the company. It will certainly make me ask the staff before deciding how I tip in future.

Most companies charge an admin fee on tips made on debit/credit card so I pay the bill for the food and drinks to the penny on the credit card and leave up to a pound per course and per person as a cash tip....if of course the service was outstanding. If the service was just mediocre then I won't leave anything and I most probably would only have the starter and move to another restaurant to seek a restaurant with better service.

ohreally

rach_pach wrote: »

they deduct 4% of the total sales figure from her tips. She says this us regardless of whether the table tip or not

That's not on. The staff need to raise this collectively and get talks on the table, more so given the national nature of the business. Negative publicity is rarely welcome!

tomtontom

ohreally wrote: »

That's not on. The staff need to raise this collectively and get talks on the table, more so given the national nature of the business. Negative publicity is rarely welcome!

It's already been well publicised, there are two chains which seem to be the main culprits. They justify it by saying it is a way to redistribute tips to non customer facing staff

ohreally

tomtontom wrote: »

It's already been well publicised, there are two chains which seem to be the main culprits. They justify it by saying it is a way to redistribute tips to non customer facing staff

The way forward in this case is either pool the tips and redistribute them (making clear to the patrons) or discourage tipping and raise pay rates across the board.

theoretica

Just to add to the minimum wage bit - this is averaged over whatever her pay period is. So if she is paid weekly then what matters is her average hourly pay for the week, not that every single hour in that time comes to over the minimum wage.

TrickyDicky101

I can understand a company making a deduction as a % of the tip value, but making a deduction as a % of the sales value (irrespective of whether a tip has been paid or not) is very wrong.

I may be incorrect but I don't believe this particular practice has had much media attention.

Nebulous2

TrickyDicky101 wrote: »

I can understand a company making a deduction as a % of the tip value, but making a deduction as a % of the sales value (irrespective of whether a tip has been paid or not) is very wrong.

I may be incorrect but I don't believe this particular practice has had much media attention.

It has certainly had some attention.

There has also been a social media campaign and some union campaigning as well.