New UK Tipping Law Sparks Confusion Among Restaurant Staff
A new UK law requires all tips, including service charges in restaurant bills, to be distributed to staff, promising a yearly gain of £200 million for servers. However, confusion persists over what exactly constitutes a tip and how it's distributed. This legislation raises questions about operational and tax-related implications, leaving both staff and restaurant owners uncertain about the future.
A recent change in UK law mandates that all tips, including service charges, in restaurant bills must be given to the staff, potentially benefiting waiters with an additional £200 million annually.
This legislative update aims to tackle the issue of restaurants previously using service charges to cover overhead costs.
Despite the change, ambiguity remains over the actual distribution of these tips among servers.
In London's Soho, patrons and staff expressed confusion over what constitutes a tip.
Some consider service charges as tips, while others, like waiter Kilian Tamagno from Covent Garden's Henri, believe genuine tips are separate tokens of appreciation.
In the UK, many restaurants now include a 12.5% to 15% service charge on bills, but the new law provides employees the right to take employers to tribunal if tip distribution policies are not fairly implemented.
However, uncertainty persists over operational and tax-related implications for restaurant owners, such as Bistro 1's Tuncay Kurnaz, who relies on service charges to offset running costs.
This legislative update aims to tackle the issue of restaurants previously using service charges to cover overhead costs.
Despite the change, ambiguity remains over the actual distribution of these tips among servers.
In London's Soho, patrons and staff expressed confusion over what constitutes a tip.
Some consider service charges as tips, while others, like waiter Kilian Tamagno from Covent Garden's Henri, believe genuine tips are separate tokens of appreciation.
In the UK, many restaurants now include a 12.5% to 15% service charge on bills, but the new law provides employees the right to take employers to tribunal if tip distribution policies are not fairly implemented.
However, uncertainty persists over operational and tax-related implications for restaurant owners, such as Bistro 1's Tuncay Kurnaz, who relies on service charges to offset running costs.
