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Business Secretary Sajid Javid has launched an investigation into the 'abuse of tipping' by restaurants as part of the government's ongoing commitment to ensuring that people are paid fairly.
The news follows reports that a number of restaurant chains are withholding a proportion of staff tips to cover administrative costs, which according to the government's press release has 'raised concerns at the very top.'
Mr Javid commented: "When a diner leaves a tip, they rightly expect it to go to staff in full. I'm concerned about recent reports, suggesting some restaurants pocket tips for themselves. That's just not right."
A call for evidence has been ordered by Mr Javid, which will look at how restaurants handle tips left by diners. The government will consider whether it needs to intervene in order to 'strengthen the voluntary code of practice,' launched in 2009 and currently overseen by the British Hospitality Association (BHA).
The government is keen to gather information from those working within the hospitality industry as well as 'other key stakeholders.' The call for evidence, which runs until 10 November, will help the government to determine whether a cap on the proportion of tips restaurants can withhold for administrative costs needs to be introduced.
According to the press release, research conducted in 2009 discovered that 20% of restaurants did not pass on tips, even though most diners wanted their tips to go to the waiting staff. Over 75% of diners said they wanted restaurants to clearly display their tipping policy.
