NIM02981 – Tips, gratuities and service and cover charges: National Minimum Wage: Background
Sections 1 and 17 National Minimum Wage Act 1998; Regulations 30 and 31(1)(e) of the National Minimum Wage Regulations 1999 (SI 1999 No 584)
Background
Under the National Minimum Wage Act 1998 a worker is contractually entitled to be paid at least equal to the national minimum wage (NMW). Any money payment paid by the employer to the worker representing amounts paid by customers by way of a service charge, tip, gratuity or cover charge that is paid through the employer’s payroll can be taken into account for NMW purposes and counts towards NWM pay.
