Who Pockets Your Tip?
You might think a tip goes straight to the person you hand it to. For years it could just as easily go to the boss.
Editor’s note. This article dates from around 2010. Since 1 October 2024 the Employment (Allocation of Tips) Act 2023 has required employers in Great Britain to pass on all tips, gratuities and service charges to workers in full and fairly. See tipping in the UK.
Photo: Ser Amantio di Nicolao via Wikimedia Commons, CC BY-SA 4.0
You might think your tip goes straight to the person you hand it to. In fact, it could be going to the boss, the business chain or a combination of people.
The "Who Gets the Tip?" campaign urges cafes, hotels, hairdressers and other businesses where tipping is usual to give customers and staff clear information about how they distribute tips. Government research suggested 61 per cent of us don't know where our tipping money goes, and many of us are too embarrassed to ask.
Who does get your tip?
- Cash tips should legally go to staff. This can be just the person you hand them to, or shared between staff.
- Tips left through a card payment legally belong to the business. In practice, card tips often go to staff with a deduction made by the business to cover the cost of processing the payment.
Everywhere is different, so if you don't see a tipping policy on the wall, the menu or elsewhere, ask.
A voluntary code
The government, trade unions, consumer groups and industry wanted businesses to sign up to a voluntary code of best practice on tipping, hoping that more people asking "Who gets the tip?" would encourage transparency.
It has been illegal for businesses to use tips to make up the National Minimum Wage since October 2009. Many service industry workers still rely on tips to support their families.
