“Tips are meant as a bonus – not a tool to boost pay to the basic minimum.”
The government’s decision to close what Lord Mandelson describes as a “legal loophole” will make it illegal for businesses to use tips to bring staff pay up to minimum wage levels.
The new rules will come into effect on the same day as new increases to national minimum wage rates.
* Low paid workers aged 22 and over get an increase from £5.73 to £5.80 an hour. * The rate for 18 to 21-year-olds has risen from £4.77 to £4.83.* For 16 and 17-year-olds, the rate has gone up to £3.57 an hour from £3.53.
“The national minimum wage remains one of the most important rights for workers. It has made a real difference to the lives of the UK’s lowest-paid workers,” continues Lord Mandelson. “It protects them from exploitation and also creates a level playing field for business, making a huge contribution to the UK’s economic success.”
Will this be a death sentence for startup restaurateurs and struggling entrepreneurs? Let us know your views.Related articles:Britain’s SMEs are still recruiting
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