Government consults on banning wage top-up practice

BERR has launched a consultation on proposals to ban employers from using service tips to make up staff pay to National Minimum Wage (NMW) levels. It follows a widespread campaign in the summer and early autumn to close a loophole in current NMW law that allowed employers in restaurants, bars and other service-based businesses to pay staff the NMW using tips left by customers. The consultation outlines plans for employers to sign up to a Code of Practice which would contain guidance on distributing tips and informing customers of service charge policies. The consultation closes on 16 February 2009.

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