The Government has launched a consultation paper setting out it’s proposals for the handling of tips and services charges. The proposals include: –
- Introducing a statutory provision to increase employer compliance.
- Improving transparency for consumers so that it is clear to them that payments for service are a choice and are not compulsory.
- Preventing employers from making deductions from discretionary payments for service except where required by tax law.
It is hoped that this consultation will bring much clarity that is required in respect of tips for workers.