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Good practice principles

Transparent and fair distribution of tips, gratuities and service charge can boost your staff’s performance and ease customer concerns about who receives a share

Good practice principles

Tipping and service charges

UK hospitality businesses who invite tips, gratuities and service charges, face a constant challenge. How do they satisfy the expectations of customers, employees, investors and authorities in the fair distribution of these payments to their staff?

How gratuities are paid by customers, handled by a business, divided between the team, and paid to individual staff members will vary from business to business.

With our expert guidance you can be certain your approach to distributing these funds is legal, fair, transparent and ethical. We can also help you make the most of any available tax-saving opportunities.

Discretionary payments available for distribution

All service charge revenue and tips paid with a credit or debit card are legally the property of the business. Tips paid by cash are not and need to be treated differently.

It’s in the best interest of your business to distribute the discretionary funds it collects in a way that would be seen as fair by most reasonable people.

How WMT can help

Using industry-led good practice principles, our experienced hospitality team will help you  balance the needs of the business with the expectations of customers and employees.

We can help you:

  • Achieve a best practice approach to fair and transparent distribution of discretionary payments in the eyes of staff and customers
  • Reward all employees who contribute to the customer experience, helping motivate them to work together effectively for the benefit of your diners
  • Create competitive reward packages to attract and retain employees

Get in touch with Peter Davies for help and advice on your tipping practices or tronc solution.

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