Hooters Liverpool Staff Protest Alleged Illegal Practices
Employees at Hooters Liverpool are sounding the alarm over withheld tips and service charges, labeling the practice as illegal. Since August, staff have reported that they have not received their accrued tips, which were vital to their earnings.
Concerns over Withheld Tips at Hooters Liverpool
When Hooters Liverpool opened in November 2022, many workers were receiving up to £1,000 weekly in tips. However, as the business faced financial difficulties, management informed staff that these tips would now be used to cover operating costs.
Allegations of Illegal Practices
Workers claim that the directive from management violates the Fair Tips Act, which mandates that tips and service charges be paid directly to employees without deductions. Reports indicate that one employee may be owed as much as £3,000 in unpaid tips.
- Staff haven’t received tips since August 2023.
- Business cited “extreme financial pressure” as a reason for withholding payments.
- Tips comprise a significant portion of workers’ income.
Barry Morris, managing director of Hooters Liverpool, acknowledged that arrears exist but stressed that the business has no intention of denying any dues. He mentioned that service charges currently collected are needed for essential costs due to no available funds.
Impact on Staff and Management Response
Workers expressed frustration over the management’s responses and the lack of communication regarding Human Resources. Many employees have reportedly attempted to engage management about the situation, but these efforts have met with minimal success.
Under the Fair Tips Act, it is illegal for employers to use workers’ tips to address business expenses. Bryan Simpson, Unite’s national lead for hospitality, reiterated that withholding tips is a violation of labor law and urged employees to seek assistance in claiming back their earnings.
Historical Context and Future Actions
The Hooters franchise in Liverpool has faced controversy since its inception. Following its opening in a former bar location, it garnered criticism from local figures, including the then-Mayor of Liverpool. Issues have persisted, as evidenced by a previous incident where former management was fined for employee harassment.
Morris has promised to address the current issues responsibly. He emphasized that the establishment is working to stabilize its operations and protect jobs while navigating financial challenges in the hospitality sector.
Conclusion
As Hooters Liverpool continues to grapple with financial strains, the ongoing situation regarding employee tips remains a focal point of concern. Workers are encouraged to unite and advocate for their rights to ensure adherence to labor laws regarding fair payment.
