CIPP survey on the BIS consultation on tips, gratuities, cover and service charges
08 June 2016
In August 2015 the Department for Business, Innovation & Skills (BIS) published a call for evidence on tips, gratuities, cover and service charges. The call for evidence initially focused on the hospitality sector. BIS also received evidence from other sectors where the payment of tips, gratuities, cover and service charges is commonplace, including gambling, betting, hairdressing and taxi operators.
The CIPP surveyed members and what was apparent from the responses was the low awareness of the voluntary Code of Practice for payroll practitioners and low visibility for customers on premises where tips and gratuities are administered. There also appears to be a lack of trust in businesses to pass on the full entitlement of tips and gratuities to workers.
BIS has now published a further consultation based around three broad policy objectives that they believe all discretionary payments for service should be subject to; they should be:
- clear to consumers that they are voluntary
- received by workers
- clear and transparent to consumers and workers in terms of how the payments are treated.
The survey should take around 10 minutes to complete and will close on 13 June 2016. Thank you for your input.