MINIMUM WAGE AND TIPS IN THE SERVICE INDUSTRIES

That this House notes with extreme concern the new guidelines published last month by HM Revenue and Customs on the tax status of tips in the service industries; observes that this confirms that waiting staff, hairdressers, hotel employees and others will have to ensure that their statutory minimum wage is met from their own tips given by customers in the expectation that they will be paid to staff as an additional payment on top of their wages; and calls on the Government, as a matter of urgency, to amend Regulation 31 of the National Minimum Wage Regulations 1999 (Statutory Instrument 1999 No. 584) to ensure that all tips, service charges, gratuities, or cover charges are paid to staff in addition to their minimum wage regardless of the method of payment used by the place of employment.