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UNANIMOUS SUPPORT FOR ‘FAIR TIPS' Wirral's many hospitality industry workers could soon benefit from a campaign to end the legal loophole which allows employers to use tips to subsidise the minimum wage. Wirral Council last night gave its unanimous support to a Liberal Democrat motion calling for support for the Fair Tips Campaign. Councillor Stuart Kelly, Liberal Democrat Cabinet Member for Community and Customer Engagement, who led the call for the Campaign said, “I'm delighted with the Council's wholehearted support for the Fair Tips Campaign, and look forward to seeing similar support amongst local employers. “The legal loophole, buried in the National Minimum Wage Regulations 1999, says that if tips are paid through the payroll, they will count towards the minimum wage. “So well buried is this regulation that the Chair of the Low Pay Commission didn't know it existed. “We give tips to show our appreciation of good service - not to benefit employers. The law should ensure that what we give to staff is paid to them on top of the minimum wage, not as a subsidy for it.” Councillor Kelly's motion includes a ‘Fair Tips' pledge as a condition for inclusion on the ‘Visit Wirral' website and other Council fair trade initiatives. Councillor Kelly's motion follows below. See also:
Liberal Democrat Group: Notice of Motion - Full Council July 14 2008 That this Council welcomes the launch of the Fair Tips Charter Campaign. Council recognises there are honourable owners of hotels, restaurants, and other hospitality outlets who ensure that all gratuities are paid to their staff in addition to at least the minimum wage without deductions. Council notes that HM Revenue and Customs class service charges, cover charges, gratuities and tips all as gratuities for national insurance contributions purposes. Council expresses its concern that many hospitality establishments still treat these as extra payments to the proprietors and do not pass them on to their staff in addition to at least the minimum wage. Council understands that this practice is legally allowed at the moment because of regulation 31 subsection 1(e) governing the Minimum Wage Act 1998. Council calls on all owners of hotels, restaurants, and other hospitality outlets within Wirral to support the four pledges in the Fair Tips Charter:
Council requests that adherence to the charter is a condition of inclusion on the ‘Visit Wirral' website and other Council fair trade initiatives. Council urges the Government to introduce an amendment that will ensure that all tips will be paid to staff in addition to the minimum wage. Council calls upon Wirral MPs to sign EDM1567 on this subject. Moved by: Cllr Stuart Kelly
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