The Ivy Collection, a popular restaurant group with over 40 locations in the UK and Ireland, is facing allegations from its staff that their share of tips has been reduced. According to employees, this change occurred after the legal minimum wage was raised in April, resulting in the National Living Wage for individuals aged 23 and over increasing from £9.50 to £10.42.
Workers at The Ivy Collection, including The Ivy Spinningfields Manchester, claim that their wages have not reflected the rise in the minimum wage. Troia (UK) Restaurants Limited, the parent company of The Ivy Collection, has stated that all staff members are guaranteed to be paid above the national minimum wage.
The Guardian reports that employees at The Ivy Collection are paid an hourly commission rate based on their position and location. This rate remains fixed regardless of the amount collected from the service charge, but it is believed to have been affected by the increase in the legal minimum wage.
One employee revealed to The Guardian that The Ivy Collection did not inform them about the reduction in their share of the service charge. They only became aware of the change when their pay did not increase following the implementation of the new minimum wage.
Another worker expressed their disappointment, stating that while menu prices had gone up, staff were receiving less in tips. Additionally, another employee mentioned that their rent had increased by 50% while their wages remained the same.
Some staff members have also observed a decline in gratuities from diners, speculating that customers may be less inclined to tip after already paying the restaurant’s service charge.
In response to the allegations, a spokesperson for Troia (UK) Restaurants Limited emphasized that all staff members are paid above the national minimum wage and that the tips collected in cash or via credit card are directly retained by the team members who received them.
This revelation has ignited a debate about fair compensation for restaurant workers and the distribution of tips. While the legal requirement to pay the national minimum wage is important, it must also be balanced with the need to ensure that employees receive a fair share of the service charge. The hospitality industry is known for its reliance on tips as an additional source of income for workers, and any changes to the distribution can significantly impact their livelihoods.
As the situation unfolds, it remains to be seen how The Ivy Collection will address the concerns raised by its employees. Similarly, the impact of reduced tipping on staff morale and income in the wider hospitality sector is a matter of concern. As customers, it is essential to be mindful of these issues and understand the potential impact of service charges and tipping on those working tirelessly to provide excellent dining experiences.
