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Tipping legislation not a quick fix, experts say

Aug 06 2008

Hurried legislation on tipping will damage small outlets, the British Hospitality Association (BHA) says.

Under the new rules, restaurants and cafes would no longer be able to make up staff wages to the £5.52 minimum wage using tips given to them by customers.

According to the body, changes in the system would require firms to adjust their business models.

This would mean increasing prices so that all revenue comes from food sales.

Calculations from the BHA show that for many hospitality firms this would take around 18 months.

Bob Cotton, chief executive of the BHA, comments: 'We need a consultation period to work out what it is that the government is going to do that is going to stand up in the courts.'

Trade union Unite has backed the move, with its joint leader Derek Simpson saying it once they are introduced the new regulations will protect staff from 'unscrupulous' employers.

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