What’s the new law?
Employees have been given legal rights over the payment of tips. Any charge called a “service charge”, or anything that would lead a customer to believe that there is a charge for service, must now be distributed to the staff, whether it is paid by cash or electronically. It cannot be pocketed by the restaurant owners. Tips and gratuities cannot be used to contribute to an employee’s contractual wages. So the basic wage must be clearly stated and not beefed up to include a contribution from tips, as was the practice in some restaurants. The tips must be added separately.
Will my waiter get the full tip?
It depends on the policy in each restaurant. Employers are now required to display their policy on the distribution of both cash and card tips prominently, and distribute them fairly and equitably. Tips may be shared with the kitchen staff as well as front-of-house. Workers will be provided with a statement showing the total tips obtained and the percentage paid to them in respect of the period they worked.
When does it start?
Restaurateurs have from now until December 1st to prepare for the changes. After that, you can be 100 per cent sure that all tips go to the staff.
[ Q&A: What does the new law on tipping mean when it’s time to pay the bill?Opens in new window ]
Where should you tip?
From a hospitality perspective, it’s everywhere short of fast food operations, it seems. Tipping for a barista-made cup of coffee is now fairly usual. The less intimidating option is the tips jar, for those who still carry cash; or the “include tip” option on an electronic payment system or iPad. Tipping 5 per cent may seem like a lot for a cup of Joe, but that’s probably just 22c, so not that much in small change. In a pub if you’ve had a sit-down meal, tip as if you’re in a restaurant, and if you’re getting table service for drinks look after your server.
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Should I tip in cash or put it on the card?
There is a sense that cash in hand offers more options to the server, but on the other hand, it may serve to make their net income appear lower when they’re sitting in a financial institution looking for a loan or a mortgage. You can always ask.
How much should I tip?
Tipping10 per cent is considered the minimum, but really, this should be 12.5 per cent. If you’re happy with the service, you could push that up to 15 per cent.
[ Opinion: Tipping is a measure of inequalityOpens in new window ]
When do you not need to tip?
When optional tipping is replaced with a mandatory service charge – 12.5 to 15 per cent is frequently added for large groups, and is also common practice in fine dining restaurants – it is not necessary to leave an additional tip. But feel free to be generous and round up the bill, or add a bit more if the service was particularly good.
When a tip is described as discretionary, do you have to pay it?
Technically, if it says the tip is discretionary, you can ask for it to be removed. For most people, this would feel beyond awkward, so it will be automatically added to your bill. Using the word “discretionary” in this context is not the best restaurant practice.
Is it ever right not to tip?
If the service has been at Fawlty Towers level without the laughs, you may want to forgo tipping. If service is downright rude, and the food is poor quality and there has been no effort to apologise or engage with the issue, you may want to slink off quietly and never darken the door again.
