A waiter has launched legal action against The Ivy restaurant chain, claiming he was unfairly denied details about how tips and service charges were shared among staff. The employee, who left his job in June, alleges he received a disproportionately small share of a £31,600 monthly pot, receiving just £97.45 despite working 43 hours.
The waiter, who wishes to remain anonymous, is claiming constructive dismissal at an employment tribunal. He argues that his share was far lower than it should have been, given that his hours represented about 2% of the total worked by staff at his branch. The Ivy disputes his calculations, calling them inaccurate and misleading, and says it uses an independent consultancy to ensure fair distribution.
The case highlights the implementation of the Employment (Allocation of Tips) Act 2023, which requires employers to distribute all service charges to workers in a fair and transparent manner. Employees have the right to know how tips are allocated and distributed, but The Ivy claims it cannot provide detailed breakdowns without breaching other employees' rights.
Michael Newman, an employment law expert at Leigh Day, said the case could clarify the level of detail employers must provide. The Ivy, owned by tycoon Richard Caring, operates nearly 40 restaurants in the UK and Ireland. A spokesperson for the parent company Troia (UK) Restaurants said they 'absolutely refute' the allegations and will challenge them at the tribunal.
