New rules have come into force to ensure that thousands of workers in pubs and restaurants get a fair deal on tips and wages.

According to the new rules tips can not be counted towards workers wages, in a move that will make it illegal for businesses to use tips to bring staff pay up to the level of minimum wage.

Tips are meant as a bonus and expected to go to the person who serves a customer. Therefore it is illegal to use tips to boost pay to the basic minimum.

The new rules are expected to bring promote fairness plus clarity for staff, customers as well as businesses.

Speaking on the government’s current move, Lord Mandelson said, “This will promote good tipping practices amongst businesses and ensure that consumers are clear about what happens to their money.”

Starting Thursday, the national minimum wage will rise by 7p-an-hour to £5.80 and 6p to £4.83-an-hour for 18 to 21-year-olds.