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UK: New law on tipping ‘to cost jobs’
The British Hospitality Association has warned that up to 5 000 jobs could be lost as a result of a law which comes into force on 1 October and which they say will cost the industry £130m. The law is designed to make sure that waiters and waitresses receive customers’ tips as an addition to their salaries rather than having an employer pay people at less than minimum wage and then making up the difference by using tips.
The government and the British Institute of Innkeepers have denied that the effects will be as hard-hitting, saying that the changes will only mean that the industry has to find some £60m.