The code of practice on tips must stay voluntary, says NHBF

Salon owners support government moves for greater transparency on tipping and how tips are treated, but the NHBF has warned that imposing compulsory rules on small businesses in the service industries is not the answer.

A survey of 300 NHBF hairdressing salons, barber shops and beauty salons showed widespread support for a range of measures outlined in a consultation on tipping by the Department for Business, Innovation and Skills which closes on 27 June.

• More than three quarters (76%) strongly agreed that businesses should make it clear to clients that leaving tips is voluntary. 
• Nearly eight out of 10 (79%) strongly agreed tips should always be passed on to workers and
• 70% strongly agreed it should be explained to clients and to employees how tips are treated.

The consultation has proposed either updating the current (2009) code of practice on tipping or making it compulsory. However, as 80% of the salons surveyed said they were unaware that the code even existed, there was strong opposition to the idea that the code should become mandatory and enforced.

Nearly half of salons said they had seen a drop in the number of tips being left by clients in recent years. Most blamed a combination of rising prices, customers having got out of the habit during the recession and the growing popularity of paying by card, where clients may be less likely to add a tip than if they were using cash.

NHBF president Agnes Leonard said:

“Tipping remains popular in our industry and many clients still like to leave a tip as a way of saying thank you and rewarding great service. We need to make sure that how tips are handled is clearly communicated, but imposing heavy-handed rules is not the solution.”

The government’s consultation can be found online at www.gov.uk/government/consultations The NHBF has used the survey findings as part of its response to the Department for Business, Innovation and Skills.