Every week in our Money blog, we answer questions about your financial problems or consumer disputes. This week, a reader asked if their boss was allowed to take a cut of their tips.
Elliott asked: “Can my boss take a cut of the tips that are shared between the staff if the boss works the shift?”
We spoke to Caroline Walker, managing director at Cavendish Employment Law, to get her thoughts.
First, it’s not quite clear if the boss in question is the owner of the company or an employee themselves.
Caroline says if the manager is an employee and was part of service on a particular shift, it would be reasonable for the tips to be shared with them.
But she adds that if they took tips not related to their service, or against the specific policy of the business, there would be grounds to raise a formal grievance.
Caroline breaks down here what UK employment law says about this topic:
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“Under the Employment (Allocation of Tips) Act 2023 that came in on 1 October, employers have to pass on tips to workers. This legislation prevents employers from keeping any part of the tips for their costs and aims to ensure hospitality workers receive 100% of tips, gratuities and service charges,” she says.
“Prior to this legislation, employers could take 20-30% to cover their costs of the business, including tax, breakages or even staff parties. They also had no rules on when the payments had to be made or any obligation to be transparent over the calculation of the payments.”
Caroline describes the new legislation as a “welcome change”.
The legislation specifically says that, as of the start of October, the employer has to ensure:
100% of tips or service charges are paid to the employee;
No deductions at all are permitted for any reason;
Tips are distributed to workers/employees no later than the end of the month after it was paid;
Tips must only be distributed within the “same place of business” meaning they cannot be pooled and distributed between multiple locations;
Agency workers will also have the right to be allocated a share of the tips but this must be paid for by the agency they work for;
The employer must also provide a written record of the breakdown of the amount available, proof that tips are paid entirely to the workers/employees and assurance it is paid by the relevant date.
If the employer fails to provide these records, the workers can bring claims in the employment tribunal, Caroline says.
“If the reader believes the employer has previously failed to account for their tips, or particularly if they have failed to comply with these obligations since 1 October, they should submit a formal grievance to the employer setting out their concerns, which the employer will be obliged to investigate and respond to,” she says.
“If their response is either not forthcoming, or confirms they have breached these obligations, they will be able to present a claim in the employment tribunal.
“By submitting the formal grievance, the reader will be able to establish whether any tips have been retained and they can include a request for the written confirmation referred to above.
“It is possible, particularly if this is a small employer, that they may not be aware of their obligations and this will provide them with an opportunity to become aware of these obligations.”
This feature is not intended as financial advice – the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:
It’s like The Godfather, one reformed drug trafficker tells me.
The mythical gangster film centred on an organised crime dynasty locked in a transfer of power.
Communities in Scotland currently have a front row seat to a new war of violence, torture, and taunts as feuding drug lords and notorious families grapple for control of Glasgow and Edinburgh.
There have been more than a dozen brutal attacks over the past six weeks – ranging from fire bombings to attacks on children and gun violence.
Image: A firebomb attack in Scotland
Victims left for dead, businesses up in flames
Gangsters have filmed themselves setting fire to buildings and homes connected to the associates and relatives of their bitter rivals.
The main aim, they boast, is to “exterminate” the opposition.
The taunting footage, accompanied by the song Keep On Running by The Spencer Davis Group, has been plastered over social media as part of a deliberate game of goading.
Garages and businesses have gone up in flames. Shots were fired at an Edinburgh house.
Signals are being sent of who wants control of Scotland’s dark criminal underworld.
Image: A firebomb attack that saw a man throw an incendiary device through a building window
Image: The fire attack set to the song Keep On Running by The Spencer Davis Group
What’s caused the gang war?
The former director of the Scottish Crime and Drug Enforcement Agency, Graeme Pearson, explains how a “vacuum of leadership” is playing a part.
Last October, Glasgow-based cocaine kingpin Jamie Stevenson, known as The Iceman, was jailed after orchestrating a £100m cocaine shipment stashed in banana boxes from South America.
The mob leader was one of Britain’s most wanted, running his business like another on-screen criminal enterprise: The Sopranos.
The 59-year-old fugitive went on the run before eventually being hunted and apprehended by police while out jogging in the Netherlands.
Image: Jamie Stevenson. Pic: Police Scotland
Image: Pic: Crown Office
‘Old scores to settle’
But paranoia was running rife about how this notorious gangster could be brought down. Was there a grass? Was it one of their own?
It further fuelled divisions and forced new alliances to be forged across Scotland’s organised criminal networks.
It wasn’t until The Iceman case came to court that it was revealed an encrypted messaging platform, known as EncroChat, had been infiltrated by law enforcement.
It ultimately led to Stevenson pleading guilty.
Ex-senior drug enforcement officer Mr Pearson told Sky News: “It is a complex picture because you have got people who are in prison who still want to have influence outside and look after what was their business.
“On the outside you’ve got wannabes who are coming forward, and they think this is an opportunity for them, and you have got others have old scores to settle that they could not settle when crime bosses were around.”
Mr Pearson describes a toxic mix swirling to create outbursts of violence unfolding in Scotland.
He concluded: “All that mixes together – and the greed for the money that comes from drugs, and from the kudos that comes from being a ‘main man’, and you end up with competition, violence, and the kind of incidents we have seen over the past four to six weeks.”
New wave of violence ‘barbaric’
Glasgow man Mark Dempster is a former addict, dealer, and drug smuggler who is now an author and respected counsellor helping people quit drinking and drugs.
He describes the “jostle for power” as not a new concept among Glasgow’s high profile gangland families.
Image: Mark Dempster
“There is always going to be someone new who wants to control the markets. It is like The Godfather. There is no difference between Scotland, Albania, or India,” he said.
Mr Dempster suggests a shift in tactics in Glasgow and Edinburgh in recent weeks, with 12-year-olds being viciously attacked in the middle of the night.
“It is barbaric. When young people, children, get pulled into the cross fire. It takes it to a different level.
“At least with the old mafiosa they had an unwritten rule that no children, no other family members. You would deal directly with the main people that were your opposition.”
Police Scotland is racing to get control of the situation, but declined to speak to Sky News about its ongoing operation.
It has been suggested 100 officers are working on this case, with “arrests imminent”.
But this is at the very sharp end of sophisticated criminal empires where the police are not feared, there are fierce vendettas and, clearly, power is up for grabs.
Laws may need to be strengthened to crack down on the exploitation of child “influencers”, a senior Labour MP has warned.
Chi Onwurah, chair of the science, technology and innovation committee, said parts of the Online Safety Act – passed in October 2023 – may already be “obsolete or inadequate”.
Experts have raised concerns that there is a lack of provision in industry laws for children who earn money through brand collaborations on social media when compared to child actors and models.
This has led to some children advertising in their underwear on social media, one expert has claimed.
Those working in more traditional entertainment fields are safeguarded by performance laws,which strictly govern the hours a minor can work, the money they earn and who they are accompanied by.
The Child Influencer Project, which has curated the world’s first industry guidelines for the group, has warned of a “large gap in UK law” which is not sufficiently filled by new online safety legislation.
Image: Official portrait of Chi Onwurah.
Pic: UK Parlimeant
The group’s research found that child influencers could be exposed to as many as 20 different risks of harm, including to dignity, identity, family life, education, and their health and safety.
Ms Onwurah told Sky News there needs to be a “much clearer understanding of the nature of child influencers ‘work’ and the legal and regulatory framework around it”.
She said: “The safety and welfare of children are at the heart of the Online Safety Act and rightly so.
“However, as we know in a number of areas the act may already be obsolete or inadequate due to the lack of foresight and rigour of the last government.”
Victoria Collins, the Liberal Democrat spokesperson for science, innovation and technology, agreed that regulations “need to keep pace with the times”, with child influencers on social media “protected in the same way” as child actors or models.
“Liberal Democrats would welcome steps to strengthen the Online Safety Act on this front,” she added.
‘Something has to be done’
MPs warned in 2022 that the government should “urgently address the gap in UK child labour and performance regulation that is leaving child influencers without protection”.
They asked for new laws on working hours and conditions, a mandate for the protection of the child’s earnings, a right to erasure and to bring child labour arrangements under the oversight of local authorities.
However, Dr Francis Rees, the principal investigator for the Child Influencer Project, told Sky News that even after the implementation of the Online Safety Act, “there’s still a lot wanting”.
“Something has to be done to make brands more aware of their own duty of care towards kids in this arena,” she said.
Dr Rees added that achieving performances from children on social media “can involve extremely coercive and disruptive practices”.
“We simply have to do more to protect these children who have very little say or understanding of what is really happening. Most are left without a voice and without a choice.”
What is a child influencer – and how are they at risk?
A child influencer is a person under the age of 18 who makes money through social media, whether that is using their image alone or with their family.
Dr Francis Rees, principal investigator for the Child Influencer Project, explains this is an “escalation” from the sharing of digital images and performances of the child into “some form of commercial gain or brand endorsement”.
She said issues can emerge when young people work with brands – who do not have to comply with standard practise for a child influencer as they would with an in-house production.
Dr Rees explains how, when working with a child model or actor, an advertising agency would have to make sure a performance license is in place, and make sure “everything is in accordance with many layers of legislation and regulation around child protection”.
But, outside of a professional environment, these safeguards are not in place.
She notes that 30-second videos “can take as long as three days to practice and rehearse”.
And, Dr Rees suggests, this can have a strain on the parent-child relationship.
“It’s just not as simple as taking a child on to a set and having them perform to a camera which professionals are involved in.”
The researcher pointed to one particular instance, in which children were advertising an underwear brand on social media.
She said: “The kids in the company’s own marketing material or their own media campaigns are either pulling up the band of the underwear underneath their clothing, or they’re holding the underwear up while they’re fully clothed.
“But whenever you look at any of the sponsored content produced by families with children – mum, dad, and child are in their underwear.”
Dr Rees said it is “night and day” in terms of how companies are behaving when they have responsibility for the material, versus “the lack of responsibility once they hand it over to parents with kids”.
Police investigating the disappearance of a woman in South Wales have arrested two people on suspicion of murder.
Paria Veisi, 37, was last seen around 3pm on Saturday 12 April when she left her workplace in the Canton area of Cardiff.
She was driving her car, a black Mercedes GLC 200, which was later found on Dorchester Avenue in the Penylan area on the evening of Tuesday 15 April.
South Wales Police said it was now treating her disappearance as a murder investigation.
A 41-year-old man and a 48-year-old woman, both known to Ms Veisi, have been arrested on suspicion of murder and remain in police custody.
Detective Chief Inspector Matt Powell said he currently had “no proof that Paria is alive”.
The senior investigating officer added: “[Ms Veisi’s] family and friends are extremely concerned that they have not heard from her, which is totally out of character.
“Paria’s family has been informed and we are keeping them updated.
“We have two people in custody, and at this stage we are not looking for anybody else in connection with this investigation.
“Our investigation remains focused on Paria’s movements after she left work in the Canton area on Saturday April 12.
“Extensive CCTV and house-to-house inquiries are being carried out by a team of officers and I am appealing for anybody who has information, no matter how insignificant it may seem, to make contact.”