I am a former trade unionist who has campaigned for fair tips for staff. I've also worked as a kitchen porter who benefitted from the tronc system where the service charge automatically applied to restaurant bills paid by card, was shared among waiting and kitchen staff.
As of October 2024, 100% of any service charge or tip paid by card must be shared via the tronc system.
This evening I ate at a Hilton airport hotel restaurant where a 12.5% service charge was added to the bill. I know that I can ask for this amount to be deducted from the bill, and that I can give a cash tip that will go directly to the waiter.
I don't generally carry cash and I have been happy to pay a service charge, knowing that it goes to the tronc. Personally I think 12.5% is probably a bit much. I would prefer a 10% charge, or for the hospitality industry to pay people properly. But I am willing to pay the service charge, knowing it will be distributed to the kitchen and waiting staff.
This is not about tipping.
This evening, the waiter said that the service charge doesn't go to him but to "the big bosses" and can be removed. We witnessed him saying the same to an American couple at the next table who paid the full bill with the service charge and gave him a cash tip, saying that this was for him. I don't care what Americans do. If they want to give him cash, I'm fine with that.
I asked him if the money went to the tronc and he wouldn't say yes. I pointed out that the law says all the service charge must be shared by the staff and asked him if the company was breaking the law. Again he wouldn't say yes.
Am I being unreasonable in thinking that he wanted to get the full tip for himself and not share it with the rest of the team?
Should I mention his approach to the restaurant manager? I imagine that he might lose his job or at the very least be disciplined for talking to diners in this way?
But it seeds distrust with diners that the law is not being followed and implies that this mega hotel chain is screwing over its staff.
YABU - who cares, give him a cash tip instead of the service charge.
YANBU - mention it to the hotel management, because he's a CF.