Zizzi reduces staff perks after the introduction of the national living wage

Employees at the Italian restaurant now have a limitation on their free meal choices and policy has changed on how much they can earn from tips

The range of dishes available for the free staff food will be reduced to either a margherita pizza or a spaghetti pomodoro (Nancy Anne Harbord)

Pizza chain Zizzi’s has reportedly reduced staff perks and benefits ahead of the introduction of the UK’s higher minimum wage.

Employees at the Italian restaurant now have a limitation on their free meal choices and policy has changed on how much they can earn from tips. Zizzi said neither of the changes were connected to the living wage.

“The range of dishes available for the free staff food will be reduced to either a margherita pizza or a spaghetti pomodoro,” it wrote in a note to staff seen by the Financial Times.

Zizzi also told waiters they could keep just 50 per cent of the credit card tips and 12.5 per cent of the service charge, with the rest to be split among supervisors and kitchen staff. Waiting staff received 70 per cent of tips with 30 per cent going to the kitchen staff under the previous system.

Anna Fletcher, employment director at Gowling WLG law firm, said the decision to raise the minimum wage by 50p per hour has led employers to look at cost cutting measures.

“It may not be in the spirit of the introduction of the living wage, but such action would not necessarily be unlawful,” Fletcher said.

But she warned that employers should stay honest with their customers.

“Employers should be careful not to mislead customers into believing the full amount of the tip is going to the waiting staff, which could be a breach of the Consumer Protection Regulations,” Fletcher said.

Some customers have threateed to boycott the restaurant and expressed their anger on Twitter following the news.

A spokesperson for Zizzi said the company supported the introduction of the national wage from the outset and belived its employees are an “essential” part of its business.

“As a result, Zizzi went beyond the government’s requirements on 4 April by awarding additional pay rises to many of those who were already above the living wage, including chefs and managers,” the company said in a statement.

Free food allowances are now extended to all staff, while before it was restricted to employees working a six-hour shift.

“This additional benefit results in a fairer and more equitable policy as a subsidised staff food menu with dishes at £1 or £2 is now available to all regardless of the length of their shift “We still provide free teas, coffee and squash to all,” Zizzi said.

The new distribution of tips is more “equitable” and reflects the effort of the entire team, according to the company.

Zizzi’s is the latest company to change its policies in regards to staff benefits following the introduction of the national living wage which came into effect from April 1.

Eat has reportedly stopped paying staff during lunch breaks. Employees are legally required to have a break if they work for more than five hours. But since the national living wage of £7.20 an hour, Eat has stopped paying staff during that break, saving the company £3.60 per employee on a shift of five hours or more.

Caffe Nero also said it would no longer provide staff with a free lunch while on shift.

Economists have warned that the policy may harm those it is trying to help.

“I think it is going to be a threat. There are going to be job losses,” Sir Christopher Pissarides, who was awarded the Nobel prize for economics in 2010, told The Independent.

About 60,000 jobs could go by 2020, according to the Office for Budget Responsibility.