Tips, gratuities, cover and service charges: call for evidence
This consultation has concluded
Detail of outcome
We’ve considered the evidence and proposals put to us and held discussions with worker and employer bodies.
The call for evidence initially focused on the hospitality sector. We also received evidence from other sectors where the payment of tips, gratuities, cover and service charges is commonplace. This included gambling, betting, hairdressing and taxi operators.
Analysis of the call for evidence submissions showed that there is broad agreement that intervention is required to improve the treatment and transparency of these payments.
Detail of feedback received
We received a total of 183 responses from:
- employees (49)
- employers (13)
- customers (91)
- other, including unions and trade bodies (30)
This consultation ran from
We're asking for your evidence on how employers pass on tips, gratuities, cover and service charges to their employees.
The payment of tips, gratuities, cover and service charges is commonplace. Concerns have been raised about the treatment of such payments in the hospitality sector, particularly in relation to the percentage of each payment that goes directly to the employer.
This call for evidence is to gather information on how tips are collected and current tipping practices. In particular, we’re seeking your views on the role for government in ensuring greater transparency and limiting the amount an employer can keep.