From 1 October 2009 services charges, tips and troncs can no longer be used to make up an employee's wage to the statutory minimum. A new Code of Practice has been issued which is available at:http://www.berr.gov.uk/files/file52948.pdf The Code sets out how businesses should clearly display their policy relating to discretionary and mandatory service charges, how they are split and how cash tips are dealt with, the advice being that they should always go to the staff. The Code also recommends that staff are clear about how tips and service charges are dealt with so that they can confidently explain it to customers, for example card service charges or tips may be split:- 10% to the business to cover charges processing payment, fraud, losses and admin charges -20% is retained by the business to cover deductions for breakages, till shortages and walk outs - 70% is shared between the staff. All cash tips go to the staff. Employers must be able to clearly show how service charges and tips are distributed, without them being used to make up the minimum hourly rate.