CoronavirusTrade Associations

Hospitality workers deserve full earnings from furlough scheme, says UKH

UKHospitality has urged the Government to reconsider its decision to exclude tronc payments from the Coronavirus Job Retention Scheme.

Under the Job Retention Scheme, tronc payments such as tips and gratuities will not be included in the amount paid to furloughed workers.

UKHospitality chief executive Kate Nicholls said the decision by the government is “incredibly disappointing” and see tronc payments as money furloughed hospitality workers “should be entitled to”.

She said: “It is incredibly disappointing that the Government has seen fit to exclude tronc payments from people’s earnings. HMRC will have evidence that employees are paid tips through a tronc, so there seems no reason not to include it in the Job Retention Scheme.

“This is taxable income that team members have earned. Excluding it from the scheme means that furloughed employees will receive less money to see them through this crisis. Money they should be entitled to.

She added: “Hospitality employees put in a huge amount of hard work to earn their tips, often going above and beyond to give customers a fantastic experience. At such a difficult time for the country, people’s hard work should be acknowledged, and those people should be supported. Not doing so only risks putting additional, unnecessary pressure on the welfare system.

“Hospitality businesses are doing their best to support employees during extraordinarily difficult times. But with zero revenue and persistent demands on cash from landlords and others, there is only so much they can do. Including tronc payments in the Job Retention Scheme would give more people some much-needed support, and we hope the Government reconsiders.”

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