24.02.2026 / Press releases / HARRODS

Harrods Hospitality Staff Take Iconic Retailer to Court over Years of Missing ‘Tips’ in Unprecedented Legal Challenge Under New UK Law 

• This is the first UK legal challenge testing what constitutes a tip under the Employment (Allocation of Tips) Act 2023. It could set a precedent across the UK hospitality sector 

• Workers allege Harrod’s £1 “cover charge” per person acts as a service charge but is not distributed to workers as required by law.  

• The first Employment Tribunal hearing is scheduled for 25 February. 

• UVW members have a long history of challenging Harrods: they won 100% of tips in 2017, followed by 5 campaigns, 3 strike ballots and a 25% pay rise. 

Hospitality staff at Harrods restaurants are taking the iconic retailer to the Employment Tribunal on 25 February over unpaid tips linked to a compulsory £1 “cover charge.” This is the first legal challenge in the UK testing what qualifies as a tip under the new Employment (Allocation of Tips) Act 2023, which ensures that tips, gratuities, and service charges paid by customers are allocated fairly to workers. The case could set a landmark precedent for hospitality workers across the country. 

Workers say the compulsory £1 per person levy functions in practice as a service charge (aka tip), as no additional food or other service was offered to customers. They argue it should be shared fairly among restaurant staff.  

The workers, all members of the United Voices of the World (UVW) union and employed across Harrods’ restaurants, say managers have had discretion to remove the cover charge on request, reinforcing that it functions like a tip. They also say the company has failed to provide a clear written policy or full records explaining how the money has been handled.  

Staff also report that the introduction of the cover charge in November 2023 (made mandatory from October 2024) has led to many customers removing the separate discretionary 12.5% service charge, further reducing workers’ take-home pay. Tips are a lifeline for hospitality workers, who often earn low wages, face unpredictable hours, and work in tough conditions. They are a crucial part of their pay and security. 

This is not the first time UVW members have had to challenge Harrods over tips. In 2017, the company was taking a shocking 75% of the service charge intended for staff, essentially pocketing workers’ wages. After organising and taking collective action, members won the right to keep 100% of their service charge. The union says that high-profile campaign helped put fair tip distribution on the national radar, contributing to the introduction of the 2023 Employment (Allocation of Tips) Act. Since then, the Harrods workers have mounted five campaigns, voted for strike action three times, and secured major victories, including a 25% pay rise and fairer leave policies. The union says this pattern shows that meaningful improvements at Harrods consistently require workers to organise and challenge management practices. 

Alice Howick, claimant, former Harrods waiter and UVW member, says:  

“Harrods introduced this cover charge out of nowhere and without any transparency as to its purpose. As those who are responsible for ensuring customer satisfaction, the front of house staff have been forced to justify this charge for years, with the knowledge that customers are unknowingly paying to take a seat at a table in Harrods despite there being no additions to or improvements in what they receive. Whilst the cover charge still exists, it should be going towards the staff who prepare and serve the food and drinks, the quality of which guarantees that customers walk through the door and Harrods makes as much money as it does. Until then, the charge serves only as a further income opportunity for a company that has never been short of money, priding itself on being the world’s leading luxury department store.” 

Petros Elia, UVW’s General Secretary:, said:  

“Our members’ history at Harrods speaks for itself. Time and again, meaningful improvements have only come when workers organised, challenged management and were prepared to take action. The 2017 victory helped put tip fairness on the national radar, and now the new Employment (Allocation of Tips) Act gives workers legal backing. If Harrods has introduced a new charge that walks and talks like a service charge, then it should be treated like one, and paid fairly and transparently to waiters and chefs. Instead, we are once again seeing what can only be described as Scrooge behaviour from a company that can more than afford to do the right thing.” 

For further information, contact the UVW communications team:
    

Cristina: 07548 759340
    

Email: comms@uvwunion.org.uk    

About UVW       

United Voices of the World (UVW) is a grassroots union representing low-paid, insecure, and predominantly migrant and BAME workers, including cleaners, concierges, couriers, carers, and hospitality staff across London.      

ENDS 

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