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Tipping Legislation - Berkeley Scott remain cautiously optimistic for the industry
Press Release, London, 1st October 2009
The new tipping legislation being introduced into the industry is being cautiously welcomed by Berkeley Scott, the UKs leading hotels, hospitality and catering recruiter.
Under new legislation companies will no longer be able to use tips or service charges to make up a minimum salary.
Managing Director of Berkeley Scott, Mark Darby, comments
"We never supplied candidates to clients who paid the minimum wage made up in part by tips; therefore the likely impact on our business is, at least in the short to medium term, negligible. We always insist on a fair and transparent wage structure for our candidates.
Berkeley Scott are hopeful that the new legislation will raise awareness of tipping and that it will make the industry more attractive to candidates, thus increasing the overall talent pool coming into the industry.
However if, as predicted by the British Hospitality Association, 5,000 job losses coupled with an overall cost of £130m across the industry is made then there could be a long term impact on the recruitment industry, with jobs being lost at all levels within a business.
However, generally speaking we have found that most customers are willing to pay a little bit extra if it means that their waiter will get paid a decent wage. Our clients are always looking for the best staff and are therefore willing to treat them fairly and equitably.
For the large corporate this legislation will be of no surprise. They have been talking about it for months and working closely with industry bodies, and therefore have factored this into their financial projections.
Smaller operations will be affected in one of two ways, either they will benefit from the level playing field created, but for those who were unaware of this legislation they may be impacted more.
As an industry we just need to be mindful that there is not a move to actively recruit people below the age of 22 (thus discriminate against those over 22) who receive a lower level of national minimum wage and thus would not impact on costs, but would not do the image of the industry any favours.
Overall however, following conversations with candidates and clients alike, Berkeley Scott remain cautiously optimistic as to its impact on the industry."
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