A recent tribunal ruling has made waves in the hospitality industry by determining that pooled tips and service charges must be included in holiday pay. This landmark decision stemmed from the case of Palanki vs The Big Table Group, involving a restaurant employee who was underpaid during his leave due to a lack of tip inclusion in holiday pay.
Key Points
- Pooled tips should be included in holiday pay following a tribunal ruling.
- The tribunal ruled on a case involving a service charge at a Las Iguanas restaurant.
- The decision indicates that tips linked to employee performance are part of normal pay calculations.
- Employers must now provide a written policy on how tips are distributed.
- Changes in the law amplify the risk of claims if holiday pay excludes tips and service charges.
Why should I read this?
If you’re part of the hospitality scene or manage staff who rely on tips, this article is absolutely essential reading! The ruling marks a significant shift in how businesses must account for tips, potentially affecting payroll calculations and employee satisfaction. Don’t let your café or restaurant fall foul of the rules – get clued up on what’s required!
