Harrods staff 'consider legal action' over £1 cover charge

Hospitality staff at Harrods are reportedly considering legal action over a cover charge added to customers’ bills that is not passed on to workers.

It comes after new tipping laws came into force in October which require operators to share all tips and service charge with staff. However, some venues add extra charges to bills which are used to fund the business.

 

The Guardian reports workers at Harrods are planning to write to conciliation service Acas as the first step towards an employment tribunal case.

 

It comes after some staff at Harrods went on strike this weekend in protest over conditions and pay, including a £1 cover charge introduced in its restaurants and cafes.

 

Harrods has paid 100% of service charge to staff since January 2022 while the £1 cover fee goes to the business.

 

The luxury store previously defended the fee, which is used on top of its 12.5% service charge, and told The Caterer its usage was “standard practice”.

 

It said the cover charge was used to support the “premium environments our restaurants are known for during peak periods of business”. 

 

However, a member of the waiting staff told The Guardian they were concerned the cover charge would have an impact on customers paying service charge.

 

Bryan Simpson, the lead organiser for the hospitality sector at Unite, told The Guardian the union was working with the Department for Business and Trade to close any loopholes on tipping as part of a consultation on the new employment rights bill.

 

Operators found to be in breach of the Employment (Allocation of Tips) Act at an employment tribunal could be fined up to £5,000 per worker.