The Association of Licensed Multiple Retailers (ALMR) has recently urged the Government to ‘proceed cautiously’ with any legislative changes regarding tipping. Chief Executive Kate Nicholls last week stated that a refresh to the code of practice would be welcome, but warned against an overreaction to reports of bad tipping.

The ALMR’s words directly oppose those of the British Hospitality Association (BHA), who, last month, called for a new law to be drafted.

The BHA, which represents around 40,000 UK-based businesses, have stated that the government should seek to improve clarity around the practice of tipping and force companies to reveal what happens to tips, and where the gratuity payments end up.

BHA executive Ufi Ibrahim, writing to the Business Secretary Sajid Javid, said: “For us it’s all about transparency.

“Although restaurants are legally entitled to deduct administration costs from service charges. [We] think it’s important the customers understands exactly how much is deducted and why.”

But, Kate Nicholls has warned against such a move.

“Hospitality businesses facing shrinking margins require a degree of flexibility to reward their staff in the way that best suits their business model,” she stated.

“There is little justification for large-scale intervention.”

“The ALMR has carried out a widespread survey of members, including leading casual dining businesses, and found extensive awareness of the current code and compliance with it,” she stated.

These responses came as the Business Secretary closed the Government’s inquiry into instances of tipping abuses.

The investigation was launched in August when it was uncovered that leading restaurant chains were deducting a percentage of staff tips that were paid by credit cards.

As of publication, findings made by the Government’s inquiry have not been released to the general public.