A controversial gig economy platform has come under intense scrutiny for allegedly encouraging hospitality businesses to circumvent the UK’s newly implemented fair tipping legislation and upcoming zero-hours contract regulations through its freelance workforce system.
Temper Works, servicing over 5,000 prominent establishments including Hard Rock Cafe and Claridge’s, is marketing its workforce to the hospitality sector by emphasising that their freelancers fall outside the scope of recent tipping legislation. The Netherlands-based organisation, which established its UK presence in 2022, is specifically highlighting how businesses can sidestep the legal requirement to include agency workers in tip-sharing schemes.
The Employment (Allocation of Tips) Act, effective since last month, mandates that all tips must be fairly distributed among workers, including temporary staff. The legislation emerged following public outrage over major chains deducting portions of staff gratuities, exemplified by the 2015 Pizza Express controversy where 8p per pound was being retained from card tips.
Unite union representatives have strongly criticised these practices, suggesting they could be unlawful as courts would likely classify these workers as employees rather than genuine freelancers. Bryan Simpson, Unite’s hospitality sector lead organiser, condemned the company’s approach as “morally reprehensible” and potentially illegal.
The platform is simultaneously advising clients on avoiding Labour’s proposed zero-hours contract ban by utilising their 60,000-strong freelancer network. Their marketing materials suggest this as a solution to circumvent the upcoming requirement to offer guaranteed hours after 12 weeks of employment.
The Department for Business and Trade has responded firmly, warning that employers attempting to bypass legislation through bogus self-employment or tip retention may face significant tribunal penalties. Despite these warnings, Temper Works maintains its operations are fully compliant with UK law, citing a Dutch court ruling that classified them as a work platform rather than an employment agency.
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