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| Tuesday, 24 September, 2002, 19:45 GMT 20:45 UK Waiters lose tips legal challenge ![]() The waiters said their human rights were breached Restaurants were right to count non-cash tips as part of waiters' wages, human rights judges have ruled. Four waiters argued two London restaurants had infringed their human rights by adding tips, left as part of cheque and credit card payments, to their wage packets as "additional pay".
But the European Court of Human Rights in Strasbourg has upheld the decision by UK courts to reject the complaints - ending a 10-year legal battle. Unions and low pay campaigners have condemned the ruling. The Paradiso e Inferno, in The Strand, and the Trota Blu, in Leicester Square, did not infringe the waiters' human rights, the court ruled on Tuesday. One of the waiters Julio Rodriguez has died since the legal battle began. Damages rejected The four waiters - Italian Sandro Nerva and Spaniards Mr Rodriguez, Jose Pulleiro and Jose Gigirey-Cabo, sued for breach of contract over the additional pay being counted towards their wages.
Their claim for damages in the High Court on the basis they had received less than the minimum wage given to waiters was rejected in 1994. Tips paid by cheque or credit card belonged to the employer and could count towards payment of a minimum wage the court then ruled - a decision upheld by the Appeal Court. When the waiters were refused leave to appeal to the House of Lords they argued in Strasbourg that their rights to protection of property and against discrimination, under the European Convention on Human Rights, had been breached. Tuesday's judgment said the legal title to tips paid by customers using cheques or credit cards passed to the waiters' employers as vouchers were made out to them. Waiters received as "additional pay", what they would have received had the tips been paid in cash, minus tax and national insurance contributions. It held, by six votes to one, that there had been no breach of their rights to protection of property and unanimously that there had been no violation of their rights not to be discriminated against. Tips vital The waiters' solicitor Catherine Scrivens said waiters had been given protection under the wages councils for hotel and catering workers because they worked long hours for low pay.
"I am sure most customers believe that when they leave a credit card tip that it goes to the waiter. "The only way to be sure the money goes to the waiter is to leave a cash tip". She called for legislation compelling restaurants to state on menus whether credit card tips were passed on in full to waiters and waitresses. Richard Towers, director of the Low Pay Unit said: "People should have a decent living wage without having to rely on tips." A spokeswoman for the GMB union said: "Tips are a reward for good service, not an excuse for employers to renege on their responsibility to pay wages." Costly decision Waiter Mr Nerva said: "I believe the court has done an injustice not only to us but to all waiting staff," he said. The 64-year-old, of Pimilco, London, believed the policy had cost him �20,000 during his time working at the Paradiso e Inferno. But the restaurant manager, who declined to give his name, said he had thought the case had finished five years ago. "But I'm not surprised at the result, there's nothing wrong with what we are doing "In 1979 the Inland Revenue told us, you must start deducting tax and National Insurance on any tip that comes through the house, ie credit cards and cheques - that's what Mr Nerva is unhappy about." | See also: 13 Sep 02 | Business 12 Aug 02 | Business 14 Apr 02 | Business 19 Aug 02 | Business Internet links: The BBC is not responsible for the content of external internet sites Top Business stories now: Links to more Business stories are at the foot of the page. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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