Ban on using optional payments to cover costs or boost profits has bosses, and their staff, worried

Restaurants are wondering whether to put up food and drink prices or risk legal action over the sharing of tips and service charge payments with workers as new legislation comes in this week.

Taxi firms, hairdressers and hotels, as well as restaurants, pubs and cafes, will be banned from withholding tips paid by customers – whether in cash or by card – and service charge payments from workers. The legislation is being introduced by the government on Tuesday, more than eight years after a ban was first proposed.