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Abuse of tipping in the restaurant sector - government launches an investigation.

Recent media reports have shone a light on the treatment of tips in the hospitality sector, suggesting that a number of major restaurant brands continue to withhold a proportion of non-cash tips left Recent media reports have shone a light on the treatment of tips in the hospitality sector, suggesting that a number of major restaurant brands continue to withhold a proportion of non-cash tips left for staff to cover "administration" costs.

A number of restaurant brands have realized that being on the wrong side of public opinion can have serious reputational consequences and are now reviewing their policies and practices. Earlier this month, the Business Secretary, Sajid Javid launched an investigation into the abuse of tipping and the call for evidence is due to close on 10 November 2015. The investigation into tipping is part of the wider action of the UK Government, which will introduce additional measures to ensure workers receive the pay they are entitled to. These measures include a crackdown on employers who deliberately fail to comply with the legislation governing the National Minimum Wage and the new National Living Wage, which comes into force in April 2016.

Please click here to read the latest on this topic from our employment law team.

Restaurant sector franchisors should consider reviewing their own policies and the policies they require their franchisees to follow to ensure that they remain on the right side of the debate and, ultimately, the law.

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