A tip for local businesses

News

02 October, 2009

Local law firm Forbes Solicitors is warning Lancashire businesses in the hospitality sector not to get caught out with new laws regarding tips and services charges that come into force today.

The new laws mean it is it now illegal for bars, restaurants and hotels to use tips or service charges to make up its' employees minimum salary which as of today has increased by 7p an hour to £5.80 for over 21s and by 6p to £4.83 for 18 - 21 year olds.

Jonathan Holden, Employment Solicitor comments, "It is vital that all employers follow the new rules to avoid legal action being taken. Anyone caught avoiding paying staff the legal minimum wage could face being taken to court for claims of unlawful deductions which could result in them having to repay the money owed plus a further penalty of up to 50% of any arrears."

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