Minimum wage can't be paid through tips, says HMRC

Managers of restaurants and bars will have to pay their staff at least the National Minimum Wage (NMW) regardless of any tips, gratuities, service or cover charges, HM Revenue and Customs (HMRC) has announced today (13 June).

In October 2007 HMRC lost an Employment Tribunal appeal case against Annabel’s, a restaurant and club. The case involved the interaction between the minimum wage and troncs, which are a system of pooling and distributing tips to staff in the service industries.

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