Minimum wage change to affect businesses

by Rachel Crook

A new law on tipping and the minimum wage will affect businesses involved in the catering trade from October.

The government is to introduce legislation that will bar employers from including tips as part of the pay of staff.

Announcing the law change, employment relations minister Pat McFadden remarked: "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."

Bosses running small businesses will need to pay the full £5.73 irrespective of any bonuses staff receive from customers, which they will be able to keep as extra.

Failing to meet minimum wage rules can lead to employers being barred from operating, as in the case of a Glenrothes gangmaster last month.

The employer lost his licence after an investigation by the Gangmasters Licensing Authority found he was only paying staff £5.41 per hour.

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Published on: May 6, 2009

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