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Tuesday, 9 February 2010

A fairer deal on tips and wages

  • Published: Thursday, 1 October 2009

Employers will no longer be allowed to use tips to top up wages to the National Minimum Wage. The National Minimum Wage is also to rise from 1 October 2009, potentially benefiting up to one million people.

Pay and Work Rights Helpline

Call 0800 917 2368, or 0800 121 4042 for textphone

Changes to the law on tips

It will now be illegal for businesses to bring staff pay up to minimum wage levels using tips.

Derek Simpson, Unite joint-general secretary, said: "The Code launched today will help consumers see where the money left for good service is going. Unite wants to see all employers sign up to the Code and ensure that their staff and customers can be confident that staff are treated fairly."

The code of practice will be monitored with a review in one year's time.

National Minimum Wage increases

Changes to the National Minimum Wage come into effect on the same day as new rate increases benefiting up to one million people.

From October 2009, National Minimum Wage rates will increase from:

  • £5.73 to £5.80 an hour for workers aged 22 and over
  • £4.77 to £4.83 an hour for workers aged 18 to 21
  • £3.53 to £3.57 an hour for workers aged 16 to 17

The government also plans to extend the adult minimum wage rate to 21-year-olds from October 2010.

Business Secretary Lord Mandelson said: "The National Minimum Wage protects workers from exploitation and also creates a level playing field for business, making a huge contribution to the UK’s economic success." 

Workers who want advice about the National Minimum Wage, or to report abuses of those rights can call the Pay and Work Rights helpline.

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