Tronc (service Charge) deduction on wage slip?

Mrs_Optimist

ASKING FOR daughters friend. He has just started working for a National restaurant chain, in the kitchen.

Has received his first wage slip, 20 hours x £5.30, less Tronc Service charge (1 unit at -£61, ) net pay £45?

He doesn't earn enough to pay tax and is still waiting for his NI number so that hasn't been deducted either.

Is this deduction legal?

Guest101

It's a way of sharing out tips etc, but I'm unclear why he'd be charged service fee.


Has he asked what its for?

Mrs_Optimist

Net pay is £45 so he has seemingly been paid £2.25 per hour!

The manager isn't available to speak to him.

I must be missing something? If it's tips then the £61 should be added to his gross pay, not deducted?

Guest101

No, he's been paid £5.30 and then had deductions. Net pay isn't used to calculate the hourly wage.


Ok, ask a colleague?


A Tronc system allows tips and gratuities to be properly administered across a system, presumably this is some kind of set up fee. He would have had to agree to it.

unforeseen

I understood that no deduction, even if agreed, could reduce pay below NMW/Living Wage.
https://www.gov.uk/understanding-your-pay/deductions-from-your-pay

paddyrg

It can't, BUT it doesn't necessarily mean that the full wage is due in the same week as worked, possibly there's balancing payments that kick in from the tronc in the next week or two which will more than make up for it - and as it's administered, it should be free from NI etc too.

agrinnall

I'd guess that paddy is right, and that from next week he'll start getting the tips included with his net pay, and this week was just a one off. And if 20 hours is his normal working time then he'll have no NI to pay as well as no tax (although £115 is a good figure to earn as he'll get NI credits to his contributions record).