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Service charge and confidential settlement to employees

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  • Service charge and confidential settlement to employees

    Good morning,
    I am a new member. I joined this for the assistance in our case.

    I work for a reputable restaurant in London.
    We have service charge from the customers at 12.5% of the bill.
    Some of the menu card presented to the customers stated that
    “An optional service charge of 12.5% will be added to your bill, which will be fully distributed amongst our staff”. But the company did not follow it and did not distribute fully to the staffs.

    So part of the employees were about to sue the company and proceeded for legal advice through solicitor. The company agreed that part of the menu cards were printed fully distributed but not all the menu cards till April 2014 to them. But what happened is during middle of 2014 the company changed all the wordings in the Menu card to a discretionary service changed to 12.5% after this matter got serious amongst the employees & solicitors.

    And also they keep aside some of the service charge in a pot and say that when there is not enough money collected in certain months they will distribute it in that month. This is a regular practice form around 2006.

    Don’t know what happened during the month of August 2015, part of the colleagues who are about to sue the company got a lump sum of money via confidential settlement through the lawyers.
    The employees who didn’t go against the company didn’t get anything. We know the exact month when the other colleagues got the settlement and it is through pay slip. Since we are colleagues and also friends they told about the settlement.
    So we are pissed off because we believed the company is right but they paid half of the staffs and rest who didn’t take legal way didn’t get anything.
    So we raised a grievance with the restaurant manager and the manager confirmed the settlement in a meeting with us and said- because the other colleagues went legal they got settlement and since we chose not to sue the company we didn’t get anything.
    So we raised a grievance with HR and the HR director didn’t go through the grievance procedure and asked us to seek the matters with hotel representative (the part of the employees who didn’t receive the settlement were GMB union members). So the Hr director wants the union representative to meet with hotel representative.
    But According to our company procedure we can raise the grievance with Hr and a union member can present in the meeting.
    We are having a meeting of grievance next week union member as witness.
    My question is, are we partially discriminated? And by law can we also able to get the same mpney as others.
    Any questions asked regarding the partial settlement the company is saying that there is a confidential agreement is made that they cannot speak about that, but the manager said in a meeting amongst the colleague who didn’t get settlement- that certain money has been paid out but they cannot speak about that because it is confidential and we are like 8 employees we there at the meeting.
    One of our friend said that that confidential agreement can be over ridden by discrimination at work by settling part of the staff and the rest not because they didn’t sue against the company.

    Interesting fact is one of the colleagues who got settlement money cannot talk about his settlement but his wife working in the restaurant is with us and didn’t sue the company and didn’t get settlement. I saw in ACAS WEBSITE THAT THE CONFIDENTIAL AGREEMENT CAN BE BROKEN TO IMMEDIATE FAMILY MEMBERS, LEGAL AD VISORS?

    If so can we use these loop hole and prove that some colleagues got paid settlement and we are discriminated.
    We are having a meeting next week with HR and any advice will be helpful about how to tackle this situation. (Union representative as witness in the meeting- Hopefully they can record the minutes of the meeting)
    Thank you
    (Sorry for the grammar mistakes)
    Tags: None

  • #2
    Re: Service charge and confidential settlement to employees

    Hi & welcome to Legal Beagles.

    Is there a tronc/tronc master?
    CAVEAT LECTOR

    This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

    You and I do not see things as they are. We see things as we are.
    Cohen, Herb


    There is danger when a man throws his tongue into high gear before he
    gets his brain a-going.
    Phelps, C. C.


    "They couldn't hit an elephant at this distance!"
    The last words of John Sedgwick

    Comment


    • #3
      Re: Service charge and confidential settlement to employees

      Thanks for your reply. The salary is consisted of part basic and part service charge. Each employee has his own service charge points according to their positions.
      The company says all the service charge collected will be divided in to 975 points and then will be distributed to staffs. This 975 points is determined many years ago when there was fully staffed. Recently for the past 4 to 6 years many staffs left and the vacancies are not filled up. If we count all the point values it wont even reach 600.
      So remaining 375 points was disappearing. Also company said the some service charge is used to pay part temporary agency colleagues , when questioned about this the company argued that the servixe charge will go any way if there is full time in that position.
      In since this 975 points was determined many years ago and for the last 7- 8 years even if we divide thw points to the agency colleagues it wont reach 750 points.
      So the company has no clear procedure for distributing the service charge and taking the money for them selves and when part of the staffs about to go legal proceedings, company settled them with money out of court. This is all based on the menu card description of " fully distribute service chare to staffs" and cheated the customers and there by cheatwd the staffs aswell.
      We have the copybof old menu card now.
      Any advoce to nail them will be much appreciated.

      Thank you.

      Comment


      • #4
        Re: Service charge and confidential settlement to employees

        https://www.gov.uk/government/upload...ctice-tips.pdf
        CAVEAT LECTOR

        This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

        You and I do not see things as they are. We see things as we are.
        Cohen, Herb


        There is danger when a man throws his tongue into high gear before he
        gets his brain a-going.
        Phelps, C. C.


        "They couldn't hit an elephant at this distance!"
        The last words of John Sedgwick

        Comment


        • #5
          Re: Service charge and confidential settlement to employees

          Thanks for the message again. That was a good information .we know the company broke the law by not qually distributing the service charge , thats why they paid confidential settlement to only part of the colleagues who questioned via solicitor and rest of the colleagues like us didnt get paid any thing- just because we believed in company. My question is by settling with a confidential agreement to partial staff , is the company is breaking the law again?
          I got advise from a friend who said that this is a discrimination and there for uk law can over ride the confidential agreement and prove that company paid money to certain staffs.Please some one shed some a light on this issue with proof like reference from gov website, So we can pin point it to them on the meeting.

          Also, as I said before, there is one more hold point we have right mow is- A couple also working in our company -Huband got settlement money but wife choose not to go legal way against the company before , didnt get any thing. But again I was told that confidential agreement can be shared between spouse and immediate family member.

          Please some one help woth advise and quote feom LAW.
          Thank you.

          Comment


          • #6
            Re: Service charge and confidential settlement to employees

            Any advice pleasw will help us.
            Thank you

            Comment


            • #7
              Re: Service charge and confidential settlement to employees

              look like we are alone in this and no one wants to step up and give advice???????

              Comment


              • #8
                Re: Service charge and confidential settlement to employees

                Discrimination, in the legal sense, occurs when someone is treated less favourably than others because of a protected characteristic (e.g. race, sex, religion,disability etc.).
                In your case people have been treated less favourably because they did not initiate legal action.
                The only reason that the employer paid the others was because they indicated that they would sue the employer. The settlement was paid to avoid this.

                If this happened last August, it's now too late for those of you who didn't act at the time to do anything. Unfortunately, trusting your employer has worked to your disadvantage in this instance.

                Comment


                • #9
                  Re: Service charge and confidential settlement to employees

                  Thank you for your precious advice. Yes you are right. We cannot do any thing about the settlement now. I spoke to union lawyers.
                  We are having a greivance metting today with HR.
                  We are going to bombard with questions about the service charge payments in the past years and we have evidence of menu cards and the revenue of each month etc etc.
                  Strange they paid
                  National insurance aswell with the service charge and paid loads of money to temporary labors.

                  Thanks again.

                  Comment

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