The Ivy is facing a legal battle with a former waiter who claims the upmarket restaurant chain unfairly allocated him a share of tips and service charges – and refused to explain how his portion was calculated – despite a new law requiring fair and transparent distribution.
The part-time waiter, who resigned in June and asked not to be named, alleges constructive dismissal and says his share of a £31,562 monthly pot of tips and service charges at his branch was “totally unfair”.
He claims that for 43 hours’ work in March he initially received £46.34 in gratuities and service charges, later increased to £97.45. By his estimate, his hours accounted for around 2% of the total worked by staff that month – yet he received less than 1% of the total funds collected.
The Ivy disputes his calculations, describing them as “inaccurate and misleading”, and says an independent consultancy oversees its distribution process. The company has branded the ex-waiter a “disgruntled and discredited” former employee and vowed to challenge the claims at an April 2026 employment tribunal.
Under the Employment (Allocation of Tips) Act 2023, 100% of service charges collected in a venue must be shared among workers in a fair and transparent way, and employees have the right to know how tips are allocated and distributed.
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