No tip tonight
Question
I work as a waitress and the management distribute service charges to all equally at the end of the night, is that legal? Also, the service charge is compulsory and some of the customers complain about it. Is it legal to have a compulsory service charge?
Answer
Compulsory service charges are not illegal, providing it states on the menu that a service charge of 'x' amount will be added to the bill. If no information about the service charge appears on the menu or elsewhere in the restaurant then only a discretionary payment, such as a tip, can be expected.
If a customer is unhappy with any aspect of a meal, including the service charge, then they have a right to challenge the amount they're being asked to pay, in the same way they would for any other service under the Goods and Services Act 1982. If the issue can't be resolved there and then, a customer can pay what they believe to be reasonable, leave their name and address and, if it should go that far, the restaurant can choose to sue them for the remainder.
How the service charge or tips will be distributed depends on how the charge is paid and the agreement between the staff and management. It sounds like your workplace uses the Tronc system where the staff pool tips or service charges and the 'troncmaster' distributes the pool amongst all the staff.
There is now a new law to protect restaurant staff's tips, as some companies have been using tips to boost wages to meet their minimum wage requirements. It is no longer legal for companies to do this, so staff must be paid the minimum wage, with tips on top of this rate.
Updated: 30/09/2009
Question answered by CAB
