"We don't get paid wages here," said a waiter at Chinatown's Furama Restaurant. "We only have tips of around £200 a week. The service charge goes to the employer. We don't get a penny."
This testimony is not an anomaly. Catering and hotel employers are making their own rules and there is no legal basis from which to challenge them.
The practices of one catering company, Green Events Ltd, provide a useful example. Prior to January waiters were paid £6.25 per hour plus 10 percent service charge. Under the new system, however, they are paid just;£4.25 per hour. Their employer uses the service charge to meet the minimum wage.