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Restaurants will be banned from keeping the tips intended for staff under new laws targeting unscrupulous practices in the hospitality industry.
Business Secretary Kwasi Kwarteng is expected to announce plans this week to stop businesses from keeping the service charge when customers pay it on bank cards.
This follows complaints that low pay and morale are helping to drive chronic staff shortages in the hospitality industry.
Job vacancies in London's restaurants and bars have increased by 60 per cent over the past year due to the combined impact of Brexit and the pandemic.
The use of cash has also tumbled during the pandemic, making it harder for staff to pocket tips.
Restaurants will be banned from keeping the tips intended for staff under new laws targeting unscrupulous practices in the hospitality industry. (File image)
Business Secretary Kwasi Kwarteng (pictured) is expected to announce plans this week to stop businesses from keeping the service charge when customers pay it on bank cards
As the law stands, owners are banned from keeping cash tips left for waiting staff but when a customer chooses to pay a tip by card the business can decide whether to keep it or pass it on to staff.
The new rules will ensure that the 1.7 million workers in pubs, restaurants and cafes will be legally entitled to 100 per cent of the tips on cards.