Tipping as part of wages
Tipping as part of wages
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Discussion

Fittster

Original Poster:

20,120 posts

242 months

Sunday 15th February 2009
quotequote all
Restaurants and hotels are making a last-minute plea to the Government to back down on plans to stop them using customers' tips to make up wages to the minimum legal level.

Tomorrow is the last day of a three-month consultation carried out by the Department of Business Enterprise and Regulatory Reform into the use of service charges, tips and cover charges in paying staff.

The department is understood to favour changing legislation so that employers can no longer count tips towards payroll costs.

http://www.dailymail.co.uk/money/article-1145582/H...

Can't say I'm against. One think to tip for exceptional service another to bring the staffs wages up to the minimum wage.

First person to link to the scene in reservoir dogs is a big smelly.

speedy_thrills

7,901 posts

272 months

Sunday 15th February 2009
quotequote all
Fittster said:
Can't say I'm against. One think to tip for exceptional service another to bring the staffs wages up to the minimum wage.
yes

Hopefully it won't cost too many folks their jobs.

Leccy

481 posts

220 months

Sunday 15th February 2009
quotequote all
speedy_thrills said:
Fittster said:
Can't say I'm against. One think to tip for exceptional service another to bring the staffs wages up to the minimum wage.
yes

Hopefully it won't cost too many folks their jobs.
Do you think if people stopped giving tips that the restaurant would shut down? smilesmile
Managers who use tips to make up to minimum wage should be shot. Is it any surprise that these are non union places. Do people on PH STILL think unions are passed their sell by date?

ShadownINja

79,983 posts

311 months

Sunday 15th February 2009
quotequote all
The service charge is the lowest of the low. If I am paying the bill (ie buying lunch/dinner for someone) I will pay a tip in cash not a service charge. The service charge goes into the restaurant owner's pocket. At the end of the month, the staff get a bonus from this service charge at the owner's discretion. That's one step removed from being a full blown member of parliament in my books.

kit80

4,764 posts

216 months

Sunday 15th February 2009
quotequote all
Totally agree, wages and tips should be two seperate things. Annoys me when tip is automatically added though, I decide whether service is worthy of a tip or not!

eldar

25,241 posts

225 months

Sunday 15th February 2009
quotequote all
kit80 said:
Totally agree, wages and tips should be two seperate things. Annoys me when tip is automatically added though, I decide whether service is worthy of a tip or not!
The proposed change sounds good, but the only winner will be the treasury. Tips are taxable, but free of NI, so by making tips part of income the wage goes down by 10%, and the establishment pays an additional 10%.

Guess who will get less in the end, while Brown pretends he loves the workers......

H_Kan

4,942 posts

228 months

Sunday 15th February 2009
quotequote all
Think this is a very underhand practice. So if I'm going to tip I'll usually just leave cash behind.

However I don't think tipping should be expected at any restaurant tbh, if you do something over and above bring my food to the table then you've earnt it. I'm not there to bring the persons wage up to a decent level with my tips.

FMV

995 posts

214 months

Sunday 15th February 2009
quotequote all
My son is doing some work in a pub/restaurant he was given a folder with 3 booklets in it. He is therefore 'training' so they can pay him below minimum wage. They are going to need a lot of legislation to sort this kind of stuff.

ShadownINja

79,983 posts

311 months

Sunday 15th February 2009
quotequote all
They're kinda admitting that they are ripping off their staff, aren't they? Surely every restaurant, like Pizza Express and Pizza Hut should be saying, "Yes, we welcome the new legislation." not "It's gonna cost us!" cos that just proves they're being little sts. (Apologies to any cheating restaurant managers on PH if you're offended. hehe )

Edited by ShadownINja on Sunday 15th February 13:43

kit80

4,764 posts

216 months

Sunday 15th February 2009
quotequote all
eldar said:
kit80 said:
Totally agree, wages and tips should be two seperate things. Annoys me when tip is automatically added though, I decide whether service is worthy of a tip or not!
The proposed change sounds good, but the only winner will be the treasury. Tips are taxable, but free of NI, so by making tips part of income the wage goes down by 10%, and the establishment pays an additional 10%.

Guess who will get less in the end, while Brown pretends he loves the workers......
Well I disagree with tips being taxable as well then, where do I vote for that? Poll office? lol

Merlot

4,121 posts

237 months

Sunday 15th February 2009
quotequote all
I hate standard 'Service Charges' that get added to the bill. Why not increase the price of the food by 5 or 10% and have done with it.

As to tipping, I will only tip when the service has been very good. When I get a sullen 18 year old shoving food down then I will certainly not tip.

eldar

25,241 posts

225 months

Sunday 15th February 2009
quotequote all
kit80 said:
eldar said:
kit80 said:
Totally agree, wages and tips should be two seperate things. Annoys me when tip is automatically added though, I decide whether service is worthy of a tip or not!
The proposed change sounds good, but the only winner will be the treasury. Tips are taxable, but free of NI, so by making tips part of income the wage goes down by 10%, and the establishment pays an additional 10%.

Guess who will get less in the end, while Brown pretends he loves the workers......
Well I disagree with tips being taxable as well then, where do I vote for that? Poll office? lol
Your choice, tip in cash direct to the server, and ignore the service chargesmile

Leccy

481 posts

220 months

Sunday 15th February 2009
quotequote all
ShadownINja said:
They're kinda admitting that they are ripping off their staff, aren't they? Surely every restaurant, like Pizza Express and Pizza Hut should be saying, "Yes, we welcome the new legislation." not "It's gonna cost us!" cos that just proves they're being little sts. (Apologies to any cheating restaurant managers on PH if you're offended. hehe )

Edited by ShadownINja on Sunday 15th February 13:43
There's a good point, is there a manager/owner on PH who does use the tips to make his staff's wages up to minimum and would he like to explain why?

northandy

3,539 posts

250 months

Sunday 15th February 2009
quotequote all
Merlot said:
I hate standard 'Service Charges' that get added to the bill. Why not increase the price of the food by 5 or 10% and have done with it.

As to tipping, I will only tip when the service has been very good. When I get a sullen 18 year old shoving food down then I will certainly not tip.
exactly... we had some p*ss poor service at pizze express recently, as we were leaving the OH asked why I wasnt leaving a tip ?, when I reminded her the waitress left us sat there for 40 mins waiting for our starter, before we asked and she then realised the kitchen had lost the order... proper service would have recognised that...

I did speak to a waitress from Pizza Express last year and she did say that tips left when paying by card went straight to her...

kit80

4,764 posts

216 months

Sunday 15th February 2009
quotequote all
eldar said:
kit80 said:
eldar said:
kit80 said:
Totally agree, wages and tips should be two seperate things. Annoys me when tip is automatically added though, I decide whether service is worthy of a tip or not!
The proposed change sounds good, but the only winner will be the treasury. Tips are taxable, but free of NI, so by making tips part of income the wage goes down by 10%, and the establishment pays an additional 10%.

Guess who will get less in the end, while Brown pretends he loves the workers......
Well I disagree with tips being taxable as well then, where do I vote for that? Poll office? lol
Your choice, tip in cash direct to the server, and ignore the service chargesmile
Well thats what I would normally do, but I used to work in a nightclub where you had to put all cash tips in the jar and its then collectively added up and distrubited via wages and taxed obviously. I know a lot of places are doing this, so there is no guarentee. Arguement being that not all front of house staff are solely responsible for the 'good service' you receive and that all members of staff have contributed to it, ie restuarents - chefs don't usually get tipped. So I can see the point of that attitude but just not the being taxed part.

jamoor

14,506 posts

244 months

Sunday 15th February 2009
quotequote all
northandy said:
Merlot said:
I hate standard 'Service Charges' that get added to the bill. Why not increase the price of the food by 5 or 10% and have done with it.

As to tipping, I will only tip when the service has been very good. When I get a sullen 18 year old shoving food down then I will certainly not tip.
exactly... we had some p*ss poor service at pizze express recently, as we were leaving the OH asked why I wasnt leaving a tip ?, when I reminded her the waitress left us sat there for 40 mins waiting for our starter, before we asked and she then realised the kitchen had lost the order... proper service would have recognised that...

I did speak to a waitress from Pizza Express last year and she did say that tips left when paying by card went straight to her...
I had crappy service from Express too, I recieved the bill, had my credit card out and caught the attention of the waiter TWICE that I wanted to pay, but he just kept on doing other things?

In the end I got up and went to the desk and paid. Was a farce.

jules_s

5,250 posts

262 months

Sunday 15th February 2009
quotequote all
I know of only one restaurant in my area that applies a complusory service charge, and in that particular establishment there are so many waitors that you get a different one serving you each different course. Passing waitors will also top your glass up as a matter of course. I dont really mind paying the service charge as no one person really merits a 'tip'

Elsewhere we make sure any Tip isnt via the handheld, always a note firmly shoved into the hand of the person who has been serving us food/drink well.

wolf1

3,097 posts

279 months

Sunday 15th February 2009
quotequote all
Tips shouldn't form part of anyones wages. They are a bonus/thank you for good service etc. To run a business that way is in my opinion underhand. Pay the going rate, cut down on staff or finally figure out that your business isn't that viable if you can't even pay the staff the correct amount.

Eric Mc

125,606 posts

294 months

Sunday 15th February 2009
quotequote all
Tips are ALWAYS taxable - but they may not always be subject to NI.

ShadownINja

79,983 posts

311 months

Sunday 15th February 2009
quotequote all
jamoor said:
northandy said:
Merlot said:
I hate standard 'Service Charges' that get added to the bill. Why not increase the price of the food by 5 or 10% and have done with it.

As to tipping, I will only tip when the service has been very good. When I get a sullen 18 year old shoving food down then I will certainly not tip.
exactly... we had some p*ss poor service at pizze express recently, as we were leaving the OH asked why I wasnt leaving a tip ?, when I reminded her the waitress left us sat there for 40 mins waiting for our starter, before we asked and she then realised the kitchen had lost the order... proper service would have recognised that...

I did speak to a waitress from Pizza Express last year and she did say that tips left when paying by card went straight to her...
I had crappy service from Express too, I recieved the bill, had my credit card out and caught the attention of the waiter TWICE that I wanted to pay, but he just kept on doing other things?

In the end I got up and went to the desk and paid. Was a farce.
Just to balance, I've never had a bad experience from Pizza Express and visit at least twice a year.