Tag: Hospitality

The Tipping Point: New Tipping Legislation in the UK

Posted on by Guy Lean

The UK hospitality industry is set to experience a significant shift with the introduction of the Employment (Allocation of Tips) Act 2023, coming into effect on 1st October 2024.  

This legislation requires the fair and transparent distribution of tips, bringing considerable changes for both employees and employers. As the industry braces for these changes, it’s essential to understand the implications of the Act, the evolving attitudes towards tipping, and the broader impact on the workforce. 

Understanding the Legislation and Code of Practice
The Employment (Allocation of Tips) Act 2023, often referred to as the “Tipping Act,” is designed to ensure that tips, gratuities, and service charges are distributed equitably among workers. To support the implementation of this Act, the Department for Business and Trade (DBT) has introduced a Code of Practice, effective from 1st July 2024, which employers must consider when establishing their tipping policies. 

 Key requirements under the Tipping Act include: 

  •  Passing on all tips to workers without deductions, except for statutory ones such as income tax. 
  • Distributing tips fairly and transparently, especially when the employer has control over their allocation. 
  • Maintaining a written policy on the handling of tips and ensuring it is accessible to all workers. 
  • Keeping detailed records of all tips received and how they are allocated, which workers can request to view. 

The Role of the Code of Practice
The Code of Practice serves as a guide to ensure fairness and transparency in the distribution of tips. It outlines principles that employers should follow, including avoiding unlawful discrimination and ensuring tipping policies are clear and accessible to all staff, including agency workers. Employers are encouraged to consult with their employees to reach a consensus on tipping policies, which should be reviewed regularly to adapt to any changes in the workforce or business practices. 

The Code also emphasises the importance of resolving disputes at the local level, with support from Acas for mediation if necessary. While the Code itself is not legally binding, employment tribunals are required to consider it when ruling on disputes related to tipping practices. 

Public Attitudes Towards Tipping
Tipping has always been a divisive issue among consumers. Some argue that service charges should be included in the price of meals and services, ensuring fair wages for staff without relying on tips. Others prefer the discretionary nature of tipping as a reward for exceptional service. The new legislation brings this debate to the forefront, encouraging a reassessment of the UK’s tipping culture.

Whether consumers will feel more inclined to leave a tip knowing it will directly benefit the employee, or if the new rules will shift expectations towards including service charges in the final bill, remains to be seen. However, this conversation is gaining momentum.

Service Charges: To Include or Not?
The inclusion of service charges on bills has long been contentious. The new legislation does not mandate the inclusion of service charges in menu prices, leaving it to individual businesses to decide their approach. Employers must ensure that any service charges collected are distributed fairly among workers, in line with the principles set out in the Code of Practice. 

For businesses, this represents a strategic choice: should they incorporate service charges into their pricing, potentially simplifying the customer experience, or retain the traditional tipping model? Each option has its benefits and challenges, and businesses will need to consider their clientele and operational requirements when making this decision.

Impact on Employees and Earnings
A key outcome of the new tipping law is its effect on employee earnings. With a transparent and equitable system for distributing tips, employees are likely to see an increase in their take-home pay, especially as tips can no longer be withheld by employers.  

This change is particularly timely, given the rising cost of living, and could provide much-needed financial relief for many hospitality employees. 

Additionally, the requirement for employers to maintain detailed records of all tips and their distribution introduces a new level of predictability and transparency. This can be particularly beneficial for workers when applying for loans or mortgages, as it ensures that all income, including tips, is properly documented. 

Legal Responsibilities of Employers
The new legislation and accompanying Code of Practice introduce clear legal responsibilities for employers. Beyond passing on all tips to workers, employers must implement a written policy on tip allocation, ensure transparency in their distribution, and keep records for at least three years. Employers are also required to resolve any disputes fairly, with workers having the right to take their concerns to an employment tribunal if they believe their tips have been mishandled. 

The Importance of Employer-Employee Communication
Navigating this new landscape will require open and ongoing communication between employers and their teams. Employers must engage with their teams, explaining the new system, listening to their concerns, and ensuring that everyone understands how tips will be managed. This engagement is not only vital for compliance but also for maintaining a positive work environment and high employee morale. 

Conclusion
The implementation of the Employment (Allocation of Tips) Act 2023 marks a significant moment for the UK hospitality industry. While it promises greater fairness and transparency for employees, it also challenges businesses to adapt to new legal and operational standards. The success of this new tipping regime will largely depend on how well businesses and their employees communicate and cooperate to embrace these changes. 

As the implementation date approaches, it will be interesting to observe how consumer behaviour shifts, how employees adapt, and how the dynamics within the hospitality industry evolve. Supported by the Code of Practice, this legislation could well be the tipping point for a more equitable and transparent service industry in the UK. 

Hospitality People Group is dedicated to exploring all opportunities to provide insights and support our clients and their people strategies. Our commitment ensures businesses can access valuable insights to create lasting value and positive experiences for their employees and guests.  

If you would like to discuss your people strategy further, then please get in touch.  

Guy Lean, Managing Director – Madison Mayfair 
+44 20 8 600 1180 / +44 7813 009787 
guylean@madisonmayfair.com  

Dan Akhtar, Managing Director – HPG Advisory Services 
+44 208 600 1166 / +44 7808 157796 
dan@hpgsearch.com  

Chris Denison Smith, Managing Director – FM Recruitment 
+44 20 8 600 1160 / +44 7775 711923
chrisdenisonsmith@fmrecruitment.co.uk  

Andrea Shaw, Director – FM Recruitment 
+44 20 8 600 1160 / +44 7714 236469 
andreashaw@fmrecruitment.co.uk  

 

Hospitality Recruitment Researcher – London

Posted on by Katherine Wyles

Do you have excellent people skills, along with experience working in hotels? Have you considered a career in recruitment?

Madison Mayfair is a boutique hospitality recruitment company, recruiting at senior levels within international hospitality – across operational and commercial disciplines, covering roles throughout EMEA and the UK.

The role of Recruitment Researcher  will be responsible for managing the recruitment process for our key clients – from sourcing candidates, interviewing and managing the process towards each job offer!

We are seeking candidates who are proactive critical thinkers, with the capacity to complete detailed research. Attention to detail is important, as is being able to manage multiple projects.

In return, we offer a strong base salary along with realistic commission and bonus payments – based on both individual and company performance.

Our offices are very close to Victoria station, with on-site cafe, gym and co-working areas .

If you would like to discuss this role, please share your CV with maracattaneo@madisonmayfair.com and we’d be pleased to have an initial conversation.

Candidates should be legally able to work in the UK.

Is Hospitality really the most stressful industry in the UK?

Posted on by Katherine Wyles

April is Stress Awareness Month, and after a number of publications last year reported that 57% of hospitality employees regularly experience high levels of stress, we want to ask if hospitality really is the most stressful industry in the UK? 

The most stressful industry in the UK? 

In July last year, a report from addiction and rehab specialist Delamere, on the toxicity of the hustle culture, gave a breakdown on stress in various industries. This report was picked up in a number of other articles at the time, and presented hospitality as the most stressful industry in the UK. According to the report, 57.1% of “Accommodation and Food Service” workers reported poor mental health, more than Health and Social Care and Manufacturing which rounded out the top three places. The data to back this up were attributed to Lifeworks’ monthly Mental Health Index. These figures tend to vary by month and while Hospitality is no longer considered the worst offender in terms of workplace stress, it still rates consistently low in areas such as Average Hours Worked and Work-Life Balance.  

The impact of stress on retention rates 

Long Hours and Work-Life Balance, contribute highly towards levels of stress, which can eventually lead to burnout, especially if the level of commitment to the business and its culture begins to wane. Inevitable this can lead to reduced productivity and employee retention levels.  

Last year, we published The Battle for Retention which looked at a number of other factors that can affect employee turnover. 

Advice on how to tackle stress in the workplace consistently revolves around how to spot it in yourself, and in your employees. As individuals, we all have a responsibility to ourselves to recognise when we are working too hard or neglecting our personal commitments. Hospitality Action is a charity that supports hospitality employees both inside and outside of the workplace. In their Advice Hub, they share expert advice and information on how to get further support on a range of issues, including Stress.  

 Signs of stress can include:  

  • Difficulty sleeping 
  • Feeling irritated with family, friends or co-workers 
  • Drinking more than usual 
  • Struggling with work deadlines 
  • Feeling isolated and lonely 
  • Physical symptoms such as: panic attacks, headaches, chest pains, indigestion, dizziness, nausea, sweating, breathing problems 

Mental health charity Mind recommends some ways to manage it including:  

  • Identify your triggers – Try to prepare for stress by recognising what sets it off 
  • Organise your time – Make a list of your tasks and approach them in order of urgency 
  • Be clear about your limits – While it isn’t always possible to say no to things, let people know if you don’t have the capacity to fulfil their demands 
  • Try to take a short break – it may seem counter-intuitive to take a break when you are stressed but if you can allow yourself one, this can help how you feel
  • Develop interests and hobbies – Outside of work, try to make time for what you enjoy to take you away from stress 
  • Get enough sleep 
  • Stay physically active 
  • Eat a balanced diet 
  • Spend time in nature 
  • Build a support network – having friends and family, or finding support at work to talk through why you feel stressed can make a big difference 

Employers also have a duty to instill a workplace culture that can help spot the signs of stress and empower them to engage with employees on a more personal level, especially if they are seeing symptoms of stress in the team or in individuals. According to the Health and Safety Executive, signs of stress in a team can include:  

  • Increase in arguments amongst staff 
  • Higher staff turnover 
  • More reports of stress 
  • More sickness absence 
  • Decreased performance 
  • More complaints and grievances  

In individuals, leaders may notice a change in the way people act or feel, such as:  

  • Taking more time off 
  • Arriving for work later 
  • Being more twitchy or nervous 
  • Mood swings 
  • Being withdrawn 
  • A loss of motivation, commitment and confidence 
  • Increased emotional reactions – being more tearful, sensitive or aggressive

In addition to the free support for hospitality employees, Hospitality Action also offers a number of support packages including Stress and Resilience Training, designed to bolster the resilience and wellbeing of your employees. 

If you would like support with your people strategy in 2023, Madison Mayfair are here for you. With a superb track record in finding the right people for the right role, we have long standing relationships with clients and candidates and we can help guide you through challenging and sometimes stressful times.  

If you would like to chat about your people strategy, please contact us on +44 20 8600 1180.  

 

 

 

 

 

 

 

Associate Director – Hospitality Capital Markets, London – Position Filled

Posted on by Katherine Wyles

This job opening has now been filled. Please check our latest job opportunities here

Our client is a global leader in commercial real estate services and they are seeking an Associate Director to join their Hospitality Capital Markets team.

The position can be based in either London or Amsterdam with key relationships being with colleagues in London plus European teams in Prague, Paris, Munich, Frankfurt, Madrid, Amsterdam, Milan, Dublin and Moscow.

This  core position will an integral member of the Pan-EMEA Capital Markets team with responsibilities including:

  • Acting as the main point of contact for Hotel Capital Markets in the Benelux region, interacting with colleagues and leadership active in other sectors, and other market participants including owners, investors, operators and consultants
  • Taking active responsibility for sourcing new business, growing contact network, cultivating own clients and identifying target assets for sale
  • To take a leading role in all aspects of running hotel marketing campaigns (alongside Lead Partner) – in particular, to maintain target lists of buyers and have conversations / conduct meetings with prospective buyers
  • To create content for marketing collateral – teasers, brochures, information memoranda and data rooms
  • To model trading hotel opportunities and hotel investments using C&W’s bespoke valuation model
  • To lead the preparation of pitches and proposals for mandates we are competitively asked to tender for
  • Attend industry events to support the team profile in the market and seek to grow your own network of contacts
  • Identify potential cross-selling opportunities
  • Contribute to meeting overall departmental fee/billing target
  • To help maintain the team’s in-house databases of buyers, transactions and On the Market opportunities

The team is small but dynamic and growing – and this is an exciting time of its evolution.
The reward and opportunities available are second to none. Our client recognises commitment, initiative, decision-making ability and hard work – and rewards accordingly.

If you are interested in this role, please contact Guy at mm@madisonmayfair.com or call on +44 208 600 1182.

 

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