Published on Wednesday, April 22, 2020

Hospitality industry warns staff could lose 40% of their wages

Hospitality businesses are seeking legal advice over the Government's scheme for furloughed workers amid fears that staff could lose up to 40% of their regular earnings.

The job retention scheme, under which the Government will pay 80% of wages up to a maximum of £2,500 a month for each furloughed worker, was rolled out this week.

However, employers have been told not to include tronc payments, which are made up of tips, gratuities and service charges, even though they are made through PAYE and are taxed.

Chief executive of UK Hospitality Kate Nicholls told City AM that tronc payments form a large part of the wages of around three million workers.

She said many of UK Hospitality's members were now seeking legal advice on the issue.

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