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Letter: Isle of Wight cafe failing to hand out tips each month, contravening employment law

OnTheWight always welcomes a Letter to the Editor to share with our readers – unsurprisingly they don’t always reflect the views of this publication. If you have something you’d like to share, get in touch and of course, your considered comments are welcome below.

This from a reader who, for obvious reasons, would prefer to remain anonymous. Ed


I’m writing regarding people working in Hospitality all over the Island, and indeed beyond.

This issue has come to light in my family as my older teenager works in a seaside cafe, and her employers don’t appear to be aware of The Employment (Allocation of Tips) Act 2023 which came into force on 1st October 2024.

Earnings at the whim of the weather and foot traffic
When it rains, she is frequently called and told not to come in to work. If she is at work and it’s quiet, then she and other staff will be sent home early. This means her earnings are at the whim of the weather and foot traffic.

As if being paid below adult minimum wage is bad enough, she can barely scrape an income in these conditions. I understand that businesses struggle, but loyal staff are making themselves available for work only to be told to go home.

For my teenager, that’s a somewhat cruel introduction into working life. She likes working, and she likes where she works. If it’s busy, then she will stay late to help them. She simply needs the hours.

Tips must be paid by the end of the month
The Act (this comes under the Employment Rights Act 1996 27G ) states:

When tips, etc, must be dealt with;

The Employer must:

  1. Ensure that a qualifying tip, gratuity or service charge is allocated in accordance with Section 27D (1) and
  2. make any payment that the employer is required to make to a worker under section 27D(2)as a result of that allocation.

no later than the end of the month following the month in which the tip, gratuity or service charge was paid by the customer.

Even if an independent tronc operator is being used, tips must still be paid within the month.

Tips only distributed at the end of the season
My daughter’s employers don’t do this – they told her she would receive tips at the end of the season.

She is frightened to speak up for her rights because she doesn’t want to be seen as a trouble maker and being in danger of losing her job.

She certainly doesn’t want me ‘wading in there’ and holding them to account.

Ask to see a tipping policy
Consumers have the right to ask to see a tipping policy. Consumers can ask if employees will receive that tip within the month. If you are a business owner and didn’t know about this then please put this practice in place today.

It breaks my heart that some people working in the Hospitality industry, which is a large number of people on the Island, are frightened to speak up in fear of losing their jobs.