The upmarket Ivy chain of restaurants is once again facing allegations of stealing staff tips. A former employee has lodged a claim for constructive dismissal with an employment tribunal. The waiter resigned from the Ivy in June after being denied information regarding how the restaurant chain calculated his share of tips and service charges, which breaches new laws aimed at ensuring a fairer and more transparent distribution of tips.
The waiter had been employed at the Ivy since November 2022 and sought clarification about his service charge and tips from the previous autumn through to spring. After making his request, he received a warning regarding his behaviour, which included forgetting guests’ drinks and failing to empty ice buckets.
This is not the first controversy involving the theft of tips that has embroiled the Ivy chain of restaurants. In Ireland, the courts found that the company had unfairly dismissed two migrant workers for their union activities. The two women had started organising in their workplace following a row about the company’s practice of using tips and service charges to make up the difference between the minimum wage and their stated pay.
After recruiting 20 staff members to the union, management began to harass and victimise the two women involved. Following a series of suspensions and incidents, including covert recordings, the company dismissed the two women in March 2019. In dismissing them, the company made a false allegation that the women had denied a customer the opportunity to leave a credit card tip, asserting that tips could only be given in cash. Subsequently, the women took their case to a tribunal and organised a campaign against the company. Although they won their case, it was significant as it marked a rare instance in which the Irish courts determined that workers had been dismissed for engaging in trade union activities.
“Management looking closely, always someone above your shoulders. You can feel it split you apart. As humiliating and stressful as it was, it was also in my head, they must be scared. I felt, well, I have some power.” Julia Marciniak, dismissed union activist.
In the current Ivy case, the part-time waiter claims he received £46.34 in gratuities and service charges for 43 hours of work in March, a sum that was later increased to £97.45. He asserts that this amount, drawn from a total pot of £31,562 collected from diners at his branch of the Ivy that month, is significantly lower than it should have been.
Under the Employment (Allocation of Tips) Act 2023, which came into effect last October, employers in Britain are required to distribute 100% of service charges collected at a venue to the workers. This distribution must be carried out in a “fair and transparent manner,” and employees have the right to know how tips are allocated and distributed.
The case could shed light on how tips and service charges are distributed within the Ivy restaurant chain. It should also clarify the level of detail that businesses are required to share with their employees concerning the allocation of service charges, including comparisons of individual shares and the criteria for distribution. If Ivy wins at the tribunal, it will raise questions about the effectiveness of the Employment (Allocation of Tips) Act and serve as yet another instance of employers being able to circumvent laws intended to protect workers’ rights.
The Ivy chain of restaurants grew out of a London celebrity haunt and now operates nearly 40 establishments across the UK and Ireland. It is part of Troia (UK) Restaurants, owned by tycoon Richard Caring. Currently, Caring is looking to sell the company, which is valued at over £1 billion. This wealth has been generated by exploiting restaurant workers, who are among the lowest-paid groups in the country.
You can find more information about the laws relating to in our Rights at Work section. If you are having problems at work, you can contact the Hospitality Workers Union at: sfhwu@riseup.net