Restaurant staff should decide how tips are shared out to stop employers “creaming them off”, he said has said.
Adding that customers were totally confused about where their money went if they decided to leave a tip or pay an optional service charge.
Many firms, he said, were ignoring a voluntary code encouraging them to make their tipping policies clear.
Andrew’s proposals would see workers guaranteed in law access to tips and service charges, and leave it to workers to decide how these are distributed between staff.
The proposals come following concerns about particular national restaurant chains taking large percentages off gratuities left for staff by way of ‘admin fees’. At present there is no obligation in law for tips or service charges to be passed on to staff.
Andrew Percy MP reports: “I have been horrified by some of the examples provided to me from workers who report losing as much as 50% of their tips to their employers. This is unfair to the worker but also to the customer who, when leaving a tip, probably expected it to go to the staff who had served them or prepared their food.
“Many of those who work in the hospitality sector earn minimum wage and tips help to bring earnings up to a higher level. My bill would allow Ministers to set in law an absolute maximum an employer could take from a tip or service charge for admin. Personally, I would guarantee staff 100% as good employers such as Pizza Hut already do, but my bill allows for a period of consultation before setting this figure.
“It is also important that workers themselves decided how tips are distributed within a business so that they can decide how they are split between kitchen staff, waiters, bar staff etc.
“My proposals protect workers and customers, but they also help employers as evidence shows that a motivated and happy work force adds considerable revenue to a business. What better way to motivate staff than for them to know that if they do a good job and a tip or service charge is left, they will actually get i.!”
Andrew’s Bill has received support from other local MPs including Martin Vickers (Cleethorpes), Nic Dakin (Scunthorpe), Graham Stuart (Beverley) and Diana Johnson (Hull North). All four MPs are sponsoring Andrew’s Bill.