South Wirral MP welcomes 'fair tips and fair wages for all'
From October, employers will no longer be able to use tips given by customers to boost staff pay up to the minimum wage.
The move has been applauded by Ellesmere Port and Neston MP Andrew Miller, who said that when people leave a tip in a restaurant they expect it to be in addition to the staff's pay.
The government says the change has been designed to give thousands of workers fair wages, ensure a fair and level playing field for employers and boost consumer confidence in the use of tips.
Employment Relations Minister Pat McFadden said: "When people leave a tip they have a right to know that it will not be used to make up the minimum wage.
"It is also important for employers to have a level playing field on wages.
"This is a basic issue of fairness. We do not believe employers should be able to use tips meant as a bonus for staff to boost pay levels to the legal minimum."
He added there are also plans to introduce a new industry code of best practice to make the issue of tipping "even clearer" for consumers.
Mr Miller said: "When people leave a tip in a restaurant they expect it to be in addition to the staff's basic pay, not to be used to make up the minimum wage as has often been the case.
"The government promised to look at this issue and I am delighted that as from October there will be a fair deal for staff and employers and tips will be, as they should, a bonus for good service, not part of the basic wage."
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