People in Pendle working in the hospitality and leisure services industry will benefit from new rules which come into force this month regulating the practice of tipping.

In future, tips must go directly to the worker concerned and not be creamed off by the employer.

Speaking from Nelson today, the MP said; “Employers are no longer allowed to count service charges, cover charges, tips and gratuities paid to their staff through the payroll as part of the minimum wage.”

“And tips given directly to an employee by a customer should never be used as part of the minimum wage.”

The British Hospitality Association (BHA) said the changes could mean restaurants losing £130 million and cost 5,000 jobs.

Pendle MP, Gordon Prentice, commented: “Tips are for the staff, not for employers. Of course, it is quite in order for tips to be shared out between those at the back and front of the house, so to speak, but for employers to pocket the money is simply not on.”

A leading employment research organisation reported recently that as many as a fifth of the UK’s 30,000 restaurants do not pass on tips to their staff, despite a survey this year that showed 94% of customers wanted them to.

Many employers instead used tips to top up wages which allowed them to pay less than the minimum wage.

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