Consultation outcome

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)

Original consultation

Summary

We're asking for your evidence on how employers pass on tips, gratuities, cover and service charges to their employees.

This consultation ran from
to

Consultation description

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.

Documents

Published 30 August 2015
Last updated 2 May 2016 + show all updates
  1. Added summary of responses and outcome.
  2. First published.