Tipping and Minimum Wage
In 2009 the company was found to be threatening to dismiss wait staff who do not get customers to pay tips on credit cards rather than in cash. Credit card tips were used by the company to subsidise wages (which are usually the legal minimum) whereas cash tips go directly to wait staff. In line with changes to tipping legislation, which came into effect on 1 October 2009, Tragus Ltd. reviewed and updated its policies to ensure that all tips, after a 10% deduction for administrative and other costs paid by credit or debit card, are now distributed through the payroll system to restaurant staff. All Tragus Group employees are now paid tips in addition to the National Minimum Wage.
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