New tip rules have limited impact

The law was meant to stop tips being used to top up wage packets

Staff at some of the UK's biggest restaurant chains aren't seeing much improvement in their wages despite new legislation to stop bosses using tips to top up low pay packets.

The government closed a legal loophole on the issue a month ago to make sure all workers received the minimum wage.

But although businesses including La Tasca and The Slug and Lettuce are now paying employees the correct basic amount, they have started charging workers an administration fee to handle credit card tips.

"Per week, I am paying around £10 or £15," said Amaya who works at the Cambridge branch of La Tasca.

"For me that's nearly one week's food at the supermarket."

Until recently Amaya, who's originally from Spain, earned £5.05 an hour. It was below the minimum wage but she kept all her tips.

Have Your Say: Have new tipping rules made you better off?

Admin fees

Now she earns £5.80 an hour, but 8% of any tips she receives on credit cards are given to the company.

Amaya doesn't think she should pay the admin fee for credit cards

That means the money she earns has only gone up slightly to around £25 extra before tax during a 40-hour week.

"It's a big company," she said. "Why do I have to pay the administration fee? They've got more money than me."

The bar and restaurant union Unite says it is concerned that some companies seem to be changing the way they distribute tips.

Dave Turnbull from Unite said: "I think we still have a bit of work to do before waiters receive 100% of their tips and certainly there may need to be further legislation to address that issue."

Other restaurants that charge staff administration fees for credit card tips include Strada, Ha Ha, Caffè Uno and Café Rouge.

Bay Restaurant Group, Tragus and Paramount Restaurants, which own the chains, insists none of their companies are making any profit from the fees.

They say they are following industry guidelines and the money is used to process payments or handle bank charges.

Some employees have greatly benefited from the changes.

At Strada, some staff were earning £2.50 an hour. A month ago that was raised to £6.20 an hour.

Workers there say they are not bothered by the 10% administration fee they are charged on credit card tips.

'For the better'

"You do see pretty much all your tips now," says waiter James, 31.

"The last paycheck I actually saw an increase of £1.50 an hour so I feel it's for the better.

James thinks customers are now happier to pay tips to waiters

"Even the customers at the tables have been saying they are more happy to pay tips now that they know it's going to the waiter or waitress."

Customer menus in most chains now include details of the charges.

But many people Newsbeat spoke to in Cambridge said they were still confused about whether to leave tips in pubs and restaurants.

"Usually I hazard a guess about where the money is going. I prefer to leave it on the table rather than put it on a card," said 28-year-old Leah, who was visiting Cafe Uno with her boyfriend Tom.

"It would be nice if there was a noticeboard or a poster up to let you know what's going on."

Unite are campaigning for customers to keep asking staff questions when they go out for dinner, especially in the run up to Christmas.

"Still ask about what they do with the tips," said Dave Turnbull.

"While it is more or less guaranteed now that tips won't be used to pay the minimum wage, the employers could be keeping some of that money."