Waiters lose fight to keep non-cash tips

03 October 2002 by
Waiters lose fight to keep non-cash tips

Four waiters have lost their 13-year battle to claim damages from a London restaurant that used non-cash tips as part of their minimum wage.

The European Court of Human Rights yesterday ruled that the Paradiso e Inferno restaurant on London's Strand had not breached its staff rights.

The four waiters sued the restaurant for breach of contract after tips given to them in the form of cheque or credit card payment were included in their payslips as "additional pay" and had been counted as part of their minimum wage.

The waiters claimed that they had received less than the minimum wage and were therefore entitled to damages.

Human rights judges upheld a 1994 High Court decision that tips paid by cheque or credit card belonged to the employer and could be counted towards payment of the minimum wage.

The European court said the waiters had received the same amounts they would have been paid if the tips had been in cash, less National Insurance and tax.

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking