Q. Can my employer use my tips to make up my pay to the minimum wage rate?

A. Under current legislation tips can count towards the national minimum wage, but only if they are paid centrally through the payroll. This means that tips must be collected centrally by the employer, for example via a service charge, and then distributed to staff through the payroll.

Cash tips given directly to the worker, for example tips left on the table do not count as pay for the purpose of calculating the National Minimum Wage.

Nor do tips which are collected and distributed informally, for example, by a central pool or “tronc”.

If you are unsure whether a deduction is lawful, please contact the Low Pay Unit's Employment Rights Advice Service for further advice.