Legal Information Centre


08 May 2009 by Mary Heaney

Employment solicitor - Tips can no longer contribute to minimum wage

The government has passed legislation that will ensure that employers no longer count tips received by staff as part of their minimum wage.
The government has passed legislation that will ensure that employers no longer count tips received by staff as part of their minimum wage. From October this year, when the law comes into force, employment solicitors will be called upon to act for workers who are not receiving the full entitlement.



The tactic for reaching the minimum wage threshold, most commonly employed in the hospitality industry, has long been criticised by employment solicitors and trade unions for its unfair treatment of the lowest paid.



What an employment solicitor can do






Employment solicitors encourage anyone who is not receiving the minimum pay they are entitled to to take legal advice at the earliest possible opportunity. At present workers aged 22 and over should receive £5.73 per hour and those aged 17-21, £4.77.



It is important to prepare detailed information for your employment solicitor so they can give you an accurate idea of the strengths and limitations of your case and help resolve the matter in a manner that allows you to keep your job.



Businesses have bemoaned the imposition of new regulation at a time when they are already facing financial difficulties but employment solicitors have urged consideration of the strains placed on employees at such a time too.



Meanwhile, Mayfair nightclub Annabel's has lost its appeal against a ruling prohibiting the nightclub from using tips and service charges to top up staff pay. The club's employment solicitors claimed that under the scheme staff were paid in excess of the minimum wage but judges ruled that it was an illegal means to avoid paying national insurance.



Using an employment solicitor




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