WELSH WAITERS CASH IN ON TIP LAWS

05|08|08

Waiters in Swansea could be cashing in following a new law change announced today  according to leading Swansea-based law firm, John Collins and Partners LLP (JCP).

It is hoped that waiters will soon be able to keep their tips on top of their pay, after the Department for Business, Enterprise and Regulatory Reform has agreed to examine the current law to seek to close a long-standing loophole. This move came to light following a campaign by a number of national high profile figures in the media and restaurant industry, including TV chef Gordon Ramsey.

Rosa Fernandez, Head of Employment Law at JCP, said:

"Because of this legal ‘loophole’, many restaurants have been using gratuities to top up staff pay to the £5.52 an hour minimum wage threshold. The proposed new laws will prevent restaurants from doing this.

"Legal policy aside, customers who leave tips in restaurants are doing so because of the service they have received, so it would seem only fair that this money ends up in the hands of the waiters or waitresses doing the hard work."

One of the chains that has been criticised is The Restaurant Group, which, among others, operates the chain Chiquitos, one of which is located in Swansea’s Salubrious Place development. Gondala Holdings, which operates Pizza Express, which has an outlet located on Castle Street, is another chain that has been said to take a cut of waiters tips. (will change to Cardiff for Western Mail)

Daniel Tercero, owner of Swansea-based La Braseria and La Parrilla restaurants said:

"I welcome the change in the law because in my eyes a tip is a gratis, a bonus, for the waitering team and should never be used to subsidise owners paying less than the minimum wage. At La Braseria and La Parrilla, the waitering team, which includes the waiters, bar staff and washers are our biggest asset and we aim to treat them fairly and with respect at all times, so all the tips we receive from our customers go directly to them. Being a waiter at a restaurant is now seen as a viable and successful career option and therefore a tip should never be seen as something they should feel they have to rely on to pay their bills."

Bethan Allchurch, 17, waitress in Peppers Wine Bar, Mumbles, said:

"At Peppers any tips we receive are a bonus on top of our wages. If your tips make up your wages, where is the incentive to work hard and please your customers? I love working as a waitress, although it can sometimes be pretty challenging, and it’s really satisfying when you get a big tip because a table feels like you have treated them well.

"I think it’s terrible that some big chains have been making money off waiters tips, surely these multi-million pound companies can afford to pay their staff the minimum wage without using their tips, which they obviously work really hard for, to top them up."

Rosa Fernandez continued:

"There is the danger that tighter enforcement in relation to tips might lead employers to cut wages or raise prices to compensate. The Department for Business, Enterprise and Regulatory Reform has also indicated it will investigate whether restaurants should be required to disclose their tips policy to customers.

"It is also a possibility that some more unscrupulous operators may feel the need to cut staff numbers in order to maintain the same level of profit. I would advise anyone who feels they may be being treated unfairly to speak to a legal professional."