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05-Aug-08 11:30 [Pay and Reward]
Restaurant tips for workers no longer make up NMW Business secretary John Hutton has decided to mark the tenth anniversary of the National Minimum Wage (NMW) by ensuring that tips given to restaurant workers can no longer count towards the payments of the base rate.
The changes made by the government will mean that the exploited loophole in the NMW legislation will be closed, not allowing bosses to make up wages to their employees from tip jars and service charges in restaurants.
Mr Hutton noted that the changes reflected "an issue of fairness and common sense" that a lot of people believed to be morally important.
He said: "When people leave a tip they expect it to go to service staff and, as consumers, we've got a right to know if that actually happens."
A former waiter told the Independent that the legislation was "fantastic" adding that customers now knew that staff would be rewarded for their good service.
It was announced on March 5th that minimum wage will rise to £5.73 on October 1st, up 3.8 per cent from £5.52.
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