Government to close tip loophole

-

Using tips to bring staff pay up to minimum wage levels will be made illegal from October, it has been announced.

The Department for Business Enterprise and Regulatory Reform has revealed it is closing the loophole that allows employers to top up staff wages with tips.

Employment relations minister Pat McFadden said when people leave a tip they have the right to know it will not be used towards the minimum wage and it important for employers to "have a level playing field on wages".

He said: "This is a basic issue of fairness. We do not believe employers should be able to use tips meant as a bonus for staff to boost pay levels to the legal minimum."

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

During the consultation process a wide number of business groups supported this change.

The adult National Minimum Wage is currently £5.73 an hour.

Latest news

Curtis Holmes: Payroll is the driver for employee engagement

Payroll has long been treated as a back-office necessity: essential, but not something that shapes culture or drives engagement. This no longer stands.

Labour market yet to show major AI impact on jobs, govt adviser says

A government economic adviser has challenged predictions of widespread AI-driven unemployment, arguing labour market data has yet to show disruption.

Young workers ‘pressured into signing NDAs after workplace injuries’

Workers say injuries are being hidden behind confidentiality agreements while financial pressures leave many afraid to challenge unsafe conditions.

CIPD recognises 30 HR leaders driving change across UK workplaces

The CIPD has unveiled its HR30 list for 2026, recognising senior people leaders whose work has delivered measurable impact across organisations and workforces.
- Advertisement -

Brits dream of being their own boss, but still cling to the monthly pay cheque, survey reveals

Britons say they like the idea of self-employment, but most still value the security and stability of traditional jobs.

AI Coaching Won’t Replace Managers. It Will Expose Coaching Debt.

As AI coaching expands, employers may gain a clearer view of where manager support is falling short.

Must read

Guy Osmond: The evolution of our workplaces, three years on from the pandemic

Guy Osmond, a leader in workplace wellbeing for more than three decades, takes us through the changes he has seen in workplaces since the pandemic!

Why Businesses Must Self-Disrupt to Thrive in the Digital Age

Ten years ago, not many people could say they...
- Advertisement -

You might also likeRELATED
Recommended to you