Seven out of ten hospitality workers don't trust that they are paid correct tips

Seven out of ten hospitality workers don't trust that they are paid correct tips, while nine out of ten would like to see more transparency as to their employer's calculations, a study has found

In the research commissioned by contactless tipping app, Tipjar, conducted by hospitality and retail agency KAM Media, 67 percent of hospitality workers surveyed questioned whether they were being given the correct tips by their employers, and 92 percent said they would like to receive more information as to how they were calculated.

84 percent declared that they don't trust that card payments are distributed fairly between staff, whether that be tips or service charge. Among the 66 percent who claimed they had knowingly had tips held back or that deductions were taken from their share, 74 percent said they weren't given a justification when they had.

Tips for Trust

Almost nine out of ten (88 percent) of employees said the fairness of the tip process plays a part in where they chose to work. Meanwhile, 43 percent of customers said they would be more likely to tip if they were sure the funds went directly to staff, and half said they would be more inclined to visit a hospitality outlet if they were sure that tips were distributed fairly there.

The news follows on the UK government's plan to overhaul the gratuity system with its long-awaited Employment Bill. Set to be introduced later this year, its measures make it illegal for employers to withhold gratuity from their teams, stipulating that 100 percent of tips and service charge should go to staff.

A statutory code of conduct will set out how tips should be distributed to demonstrate transparency and fairness, and if a business is found to be breaking the law, it will become liable to be taken before an employment tribunal.

The bill was put forward following a series of high-profile stories indicting companies found to be deducting money from card payments meant for waiting and kitchen staff.