Scottish Labour MPs have welcomed the Labour Government’s announcement that using customer tips to pay the minimum wage will be outlawed from October.
This will give thousands of workers fair wages, will ensure a fair and level playing field for employers, and boost consumer confidence in the use of tips.
Labour MP for Linlithgow and Falkirk East Michael Connarty said:
“This is great news for hard-working, low-paid staff.
“I first introduced a Bill on this 6 years ago and it has been a long struggle, but this is an excellent day for tens of thousands of Scots who work in the service industry.
“Customers can now be confident that when they get good service any tips they leave will go to the staff.
“It is important that the rules will apply to tips, service charges, cover charges and so on.
“Tips should be there as discretionary payment from a customer to the staff because of the service they get, not as a means of employers avoiding the minimum wage.”
Employment Relations Minister Pat McFadden said:
“When people leave a tip in a restaurant they expect it to be in addition to the staff’s basic pay, not to be used to make up the minimum wage. We said last year we would look at this issue and today we have confirmed that from October, we are changing the rules to ensure that when people leave a tip for staff they can be sure it will not go towards making up the minimum wage. It means a fair deal for staff and for employers.
“This is another step towards Labour’s vision of a fair future for all, where people receive fair pay for their hard work.
“David Cameron campaigned against the introduction of the National Minimum Wage which has given employees a decent level of pay. His opposition to the support that the Government is giving people during the recession shows that he is still out of touch.”