A number of restaurant brands have realized that being on the wrong side of public opinion can have serious reputational consequences and are now reviewing their policies and practices. Earlier this month, the Business Secretary, Sajid Javid launched an investigation into the abuse of tipping and the call for evidence is due to close on 10 November 2015. The investigation into tipping is part of the wider action of the UK Government, which will introduce additional measures to ensure workers receive the pay they are entitled to. These measures include a crackdown on employers who deliberately fail to comply with the legislation governing the National Minimum Wage and the new National Living Wage, which comes into force in April 2016.
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Restaurant sector franchisors should consider reviewing their own policies and the policies they require their franchisees to follow to ensure that they remain on the right side of the debate and, ultimately, the law.