The British aren’t the best when it comes to tipping, but when people do reward good service, such as from a taxi driver, they want every penny of the tip to go to that person, and not into someone else’s pocket.
Taxi drivers provide a vital role in the communities they serve and do far more than get people from one place to another. Safety is paramount and they protect their passengers and look out for each other, as well as assisting passengers with their shopping, luggage or anything else they need help with.
Changes
From October 1, the laws regarding tips changed and now the full tip has to go to the worker and not their employer. This is particularly important when payments are made electronically, and the tip is added to the total. Among the businesses expected to be affected the most are restaurants, pubs, hairdressers and taxi operators.
The Liverpool Echo reports that the changes will mean more than two million workers will be able to keep hold of an estimated £200 million a year in tips, gratuities and service charges.
As part of the changes, employers must have a written policy on tips and record how they manage them. Importantly, workers will have the right to request information about tips which can be used as evidence to an employment tribunal.
When tips have been paid, employers must pass on the full amount to workers within one month, without any deductions, on top of their normal salary. The law also prohibits companies from changing someone’s salary and using tips to make up the difference.
Transparency
In order for businesses such as taxi operators to be transparent about the collection and distribution of tips, bosses are concerned there will be extra costs and extra time commitments involved in order to meet the requirements.
While welcoming changes that will benefit hospitality workers, Kate Nicholls, chief executive of industry body UK Hospitality, told the Echo: “New rules naturally come with an administrative burden and businesses will see some additional cost as they work through them in practice.
“It’s another example of costs being placed on a sector that can least afford it, and we continue to urge the Chancellor to bring down hospitality’s cost burden at the Budget, primarily through taking action to avoid the billion-pound business rates bombshell set to hit the sector next year when relief ends.”
Despite the concerns about extra red tape, she welcomed the principle behind the changes. She added: “These changes rightly ensure tips hard-earned through excellent service will end up entirely in their pockets.”
Andrew Tighe, director of strategy and policy at the British Beer and Pub Association said: “This new framework will introduce a level playing field for all businesses, ensuring that those who were not already passing on all tips to their staff will now be required to. A greater degree of consistency and transparency when dispersing tips will benefit both existing and new staff alike.”
Justin Madders, minister for employment rights, said: “This is just the first step of many in protecting workers and placing them at the heart of our economy. We will be introducing further measures on tipping to ensure workers get their fair share of tips.”
It is good news that workers such as taxi drivers are to keep every penny they earn in tips for excellent service. Many businesses already pass them on to staff, but with electronic payments, it is not always possible for workers such as taxi drivers to know whether a tip has been paid or where the money has gone.
This way, they not only receive their full salary, they also get the benefit of bonuses paid when people want to thank the for such good service.
