Ivy Collection responds to employee complaints over service charge

Employees of the Ivy Collection have accused the restaurant group of cutting the percentage of service charge they receive following the minimum wage increase in April this year.

Team members told The Guardian the reduction had negated the increase in their basic levels of pay.

The National Living Wage for those aged 23 and above rose from £9.50 in April 2022 to £10.42 in April 2023.

An employee of the Ivy Collection told The Caterer: “When minimum wage went up 92p this year, nobody’s total hourly pay increased. Everyone’s hourly pay stayed the same. We just started getting 92p per hour less tronc because minimum wage went up.

“It definitely does not feel like we are getting less busy and also menu prices have gone up recently - that means the company gets even more tronc.”

The Guardian had reported that Ivy Collection employees are paid an hourly “commission” based on their position and location, which comes out of service charge, and that some workers had seen their cut reduce by more than 90p an hour since April.

A spokesperson for Troia (UK) Restaurants Limited, parent company of the Ivy Collection, said: “Every single member of our staff is guaranteed to be paid above the national minimum wage and all cash or credit card tips are kept directly by the member or members of the team who received the tip.”

The claims come as the hospitality industry prepares itself for the incoming tipping legislation, which is expected to come into force in April or May next year, making it unlawful for businesses to hold back service charges or tips from their employees and regulating their distribution.

The Ivy Collection is owned by Richard Caring and operates over 40 restaurants across the UK and Ireland.