Marvin OnumonuMore than half of consumers said they do not trust restaurants to pass tips on to staff, a year after the Allocation of Tips Act came into force, research from URocked found.
The survey showed 54% of people did not believe restaurants were handing over all tips.
Around 24% of restaurant staff said they had seen no difference in how tips were dealt with, and only 20% reported getting more tips since the change, while 23% said they were getting less.
Out of those in charge, 53% said correctly that 100% of tips must go to staff, but 45% thought there were still ways to make deductions or exemptions, or believed they could split tips as they liked.
Some 14% of staff said they did not think their employer was following the law.
There was potential for more tipping, with 60% of staff saying customers would probably tip more if they understood the new rules.
At the moment, 22% of staff rely heavily on tips for their income.
David Dillon, CEO and founder of URocked, said: “While nearly nine out of ten respondents say the new law has made things fairer for staff, our research shows there’s still work to be done in building consumer trust and ensuring universal employer compliance.
“Too many businesses in the sector are either unclear on the rules or have failed to make the changes required, and that leaves both staff and customers questioning whether tips are being handled fairly.
“Transparency and education are now key to improving confidence across the sector.”
Other findings included 21% of decision makers who did not describe the law correctly thought it only applied to full-time staff.
Around 15% believed they could keep control of tips if there was a policy printed on receipts, and 9% still thought it was permitted to deduct admin fees from tips.
Most staff, 60%, said customers would tip more if they understood the law, and 85% of all respondents said the law had made things fairer for staff.
Some 65% of staff said they relied on tips or service charge income in some way.
