Hotel waiter claiming service charge goes to the big bosses

[FleurdeLion]

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.

Just because it is law do you honestly think all the service charge goes to staff? If you do, then you are very naive!

I think I’d better don my hard hat as I seem to have a controversial option on this looking at this thread.

Tips should only go to waiting staff.

If I tip, I’m tipping the service, i’m not tipping the food, (I have tipped after receiving bad food as it was handled excellently) or the fact I have been served it on clean plates. That’s what I’m paying my basic bill for.

The tip is purely for the human interaction I have, I don’t interact with the chefs, KP’s etc so they do not deserve a tip. I don’t care what they earn, they can negotiate their own wage but If they want a tip, they need to get a job as waiting staff and be good at interacting with people.

It’s a perk of waiting staff for dealing with the public which is the hardest part of the job.

What are the facts of your situation?

We have someone at work doing what you are doing, however they haven't understood that the service charge is paid out through payroll.

If you give the facts, and the answers your director has come back with someone may be able to advise you.

I agree with this. You don’t actually know anything about- you’re making up your own narrative without any proof. Why would you report something based on supposition that could result in someone losing their job. Appalling.

What an absolute 🛎️ end you are. Keep out of it

Because unions only care about their monthly subs. I will never join a union again. Con artists unless they think it’ll get in the media. Unite is the worst for it

I can read a payslip and I have not been paid tips since a certain date and neither has any member of staff in the venue (it’s discussed regularly). I have worked with the company in different departments and venues for a very long time and this man is a very unpleasant person and gets joy from others people’s misfortune. I don’t want to give too many details as it could be outing and those of us with zero hour contracts who involve themselves with things too much can just end up without a job. I have a text message from him where he tells me the last time he paid tips out to staff. He just doesn’t want to do it. I have the other share holder on my side, luckily.

No, you should absolutely not drag customers into your dispute with your employer - it is none of their business, and they are there to enjoy a meal.

As an adult, you have options to challenge this through employment laws, could vote with your feet, and can clearly campaign publicly (assuming you would be leaving their employ if you chose to do so). But not by putting paying customers on the spot at the end of their meal.

How likely is it that with all the employees that Hilton has they ate deliberately flouting this law and no one has highlighted it?

Not one of the ex employees who have left since the law came in? No one who works in the head office who knowingly organizes the money going to the wrong people

In this day and age it would be almost impossible to keep that secret if it was happening imo

No, you’re right. I won’t actually be doing this, but I wish I could sometimes when I get really frustrated. Sooo much money is lining the pockets of the director when it’s the staff’s money. I mostly work in the head office and help out in one particular venue, so it’s more the other staff that I feel frustrated for. I won’t be able to challenge or campaign as I have a verbal agreement on my set hours with my contract being a zero hour contract and so I wouldn’t have a job if I started anything like this. Tips owed to me are minimal, as like I said I work mostly for the head office. But it’s the fact that customers believe they’re giving tips to my hard working colleagues when in actual fact they’re giving money to the director. It’s not about the money, it’s the principle of the situation.

You’re wrong the tronc is paid by the service charge 1or 2%

Oh mate. I wish the world worked like that, really I do.

What you need to do, is push to find out if the system is working correctly and fairly, under the new legislation, and that the big companies have not found a way round it, without involving an individual staff member. Previous posters have told you their experiences of companies limiting who is eligible to receive their share. Investigate that.

Is it just restaurant and kitchen staff eligible for a share of service charge , or, could management also receive a share or if it’s a hotel for example, more senior people on higher salaries than the restaurant staff

I've never had waiting staff badger me for a tip. I was served by the regular young team yesterday and I always give them a cash tip if they've helped me carry drinks outside or brought coffee out. Back of house staff aren't providing that service for me.

You’d be amazed at what a skilled accountant can achieve.

I wish the service charge was just added automatically. A lot of people dont carry cash anymore, but I have noticed that there does seem to be an unwillingness in some restaurants who don't automatically add a service charge from the serving staff if you ask for a tip to be added on to the bill.
Is it because it is a pain accounting wise, as PP said, or because they believe the tips are not shared fairly, or because they are more likely to get a cash tip this way?
A lot of time, if the bill is less than 100 pounds they will just hand the machine to tap the card on.
I always feel bad just tapping the card, but I hardly ever have cash, and I always believed that the tips are shared fairly since the date in 2024 the OP has mentioned.

If your director is breaking the law this has serious implications for his business. I suggest you approach ACAS for further advice:

https://www.acas.org.uk/tips-and-service-charges

Is any element of the service charge included in salary? Employers can do this but only where the service charge element is in excess of minimum wage.

Why con artists?
I wish everyone belonged to a union. We’d have more power collectively to prevent unethical companies treating their employees poorly, than as individuals.
But, I do believe union powers are minimal compared to what they used to be.

https://uk.indeed.com/m/viewjob?jk=b92289a89135a357&advn=202426639553201&adid=418426546&ad=-6NYlbfkN0Dsx7p6VcmYAR6c8HtS_ciZDVBFw44P85sKBHamG6HfdC_47QdyntNGgAX26JJxAZ-YSW-tY-RGsC4ldrPDEDsQ_UhANyjs-DK22qyz6HGh0MUcA8DMkioJZ3isoCj90czaqSmY6HpBBUATs7f5E75s6mQ_59oxIKgFgCEloFJlx6dYGS8KL-ew23I7PJ5dRrDLotFr7kk7jh-zHsjcJ2DOIelCIhqJvoFuUqG81SYV451Vvv1RDPX2PH3F_uVH6VEy7_30s_mKdR4Zc_YFX7gQmWHalT0YYtBapon2OqOM_q3jJqVcNM4hQjNiHPXvjCoQ-nygm4oPVg2lPNCNZ-7lsWOrMIHDh5j8_Y9_w4QiDL-vJ3w-KJJT9byok_JaudobXGQLh0jesbVIMpBKzUgCljTzvqHBrwBZt0xLsA5M4r7uJ1PqH16aZGSWmqIQC2bERD9eSo2shscWTTcMxpljz3p5k6lfH9YktSZTsHgOCuYNQHoUfwYwQaRkVI8y-r7pnATcPkTpLeb2wOJybE4hBOmMuAs2oa7y855WeSpFNCfwTG9ICcLPBkDeqHx61OJTj12YlJ-rc1YCf6HrF_Mm&from=serp&dest=https%3A%2F%2Fcareers.gleneagles.com%2Fjob-details.aspx%3Fjobid%3D247587%26source%3DIndeed%26lever-source%3DIndeedSponsored&desth=6a10f6ddd378f185cb8b6e3dddca6ebc&prevUrl=http%3A%2F%2Fuk.indeed.com%2Fm%2Fjobs%3Fq%3Dgleneagles%26l%3D%26from%3DsearchOnHP%26sameL%3D1&tk=1isl904tokhgk807&dupclk=1&acatk=1isl90dv0k1u2801&mclk=default&pub=6917c08ec3ecf6012dd26f3773156e870cace3277f6b99df&camk=f416UQcMBpAGnAwXIpJx-w%3D%3D&xkcb=SoDH6_M3xVaPegzZjp0KbzkdCdPP&xpse=SoAw6_I3xVaOZFWWW50IbzkdCdPP&xfps=c63153e6-afcf-4b0a-93ee-47c303ec7e20

They base it on what was paid in the previous year/ projections for coming year. It is a massive business with over a thousand staff. So a cleaner will get £13.13 but hopefully an extra £2.50 per hour in tips (once a year) but headline rate is £15.63.

Being paid tips once a year isn’t fair. Needs to be weekly or monthly at most. If you only work there for a few months you won’t get your tips

This all reminds me of when I was paid under the umbrella scheme. You felt ripped off one way or another when you got each pay slip.

In fairness if you leave or are seasonal then you get your share of tips and holiday pay rolled into final salary. That is a change due to 2024 it used to be you’d need to be employed at bonus time to get your bonus.

YABVVU

Are you really trying to get a waiter who is likely to be on minimum wage and treated like shit by his company sacked?

Seriously?

Mind on your own business and you have no place being a trade unionist with that type of thinking...

You should direct your anger towards the big bosses who pay staff misery wages while making huge profits out of their labour.