Friday 13th - Not unlucky for some
Friday 13th did not prove to be unlucky for those who work in either the restaurant or bar industry. On the 13th June the Employment Appeals Tribunal (EAT) ruled in HM Revenue & Customs favour in relation to tips and the amount a restaurant or bar worker should be paid.
The decision surrounds the National Minimum Wage legislation and a case involving Annabel’s Restaurant and Night Club. It means that an employer will have to pay their employees at least the National Minimum Wage, currently £5.52p.h. for those aged over 21, regardless of the amount they receive in tips or gratuities, which is good news for employees.
The argument put forward by HMRC considered payments via a ‘tronc’ scheme. Troncs are a system of pooling and distributing tips to staff in the service industries, all tips and gratuities are paid into a pool and distributed from the pool to the employee by the troncmaster. The amounts paid from the pool are not classed as being paid from the employer. HMRC argued that if the amounts are not paid by the employer then they should not be considered as part of the National Minimum Wage.
An HMRC spokesman stated that their priority was to ensure that all workers were paid at least the National Minimum Wage, the Department for Business also echoed this sentiment adding that it was essential that all UK members receive the pay they are entitled to.
HMRC are responsible for enforcing National Minimum Wage legislation and vigorously do so across all employment sectors particularly the catering and hospitality industry. Penalties for employers who pay below the statutory limits are unlimited. Employers should regularly check that they do not fall foul of legislation and that they are paying staff above the limits.
Biggleswade Chronicle - 4th July 2008