Waiting staff to get tips on top of pay

Money

Many restaurants have been under paying their staff and supplementing their wages with tips as part of a service charge.

But the Government will take action after Business Minister, Peter Mandelson, announced a consultation to end unscrupulous employers short changing their workers in this way.

At the moment employers can pay their staff less than minimum wage, which is currently £5.73 for adults, but then top up their wages through tips, this is usually done by a service charge added to your bill.

A number of restaurants in Rochdale operate this system. Frankie & Benny’s on Sandbrook Park, for example, is just one of many.

Rochdale’s Labour Parliamentary Candidate, Simon Danczuk, wants workers in the town to get a fair wage and wants this practice to end. "This is a matter of fairness and common sense,” he argued.

“When you go to a restaurant or to have your hair cut and leave a tip, you expect it to go to the staff on top of their pay, not to be put through the payroll to make up the Minimum Wage.

“This will benefit workers throughout Rochdale, people we all rely on, but who sometimes don’t have the strongest voice. “

And as part of the Government's crackdown on those who try to exploit workers, new penalties for employers who underpay their staff have been made law and will come into force next April.

There could be unlimited fines for the most serious cases rather than the current maximum limit of £5,000.

Mr Danczuk added: "When families are struggling with rising fuel, energy and food prices it is more important than ever to have the National Minimum Wage.

“Every worker should earn a fair wage for a fair day's work - there is no excuse not to pay up. I supported the Employment Act because I wanted to see tougher action on rogue employers who con their staff.

"Rogue employers need to be exposed. If you think a rogue employer is not paying up then get in touch with the national minimum wage helpline on 0845 6000 678. And don't worry; you don’t have to give your name or details to them if you don't want to.”