The regulations comes into force today with new increases to national minimum wage rates.

Business secretary Lord Mandelson says: ‘When I leave a tip I don’t expect it to be used to make up the minimum wage. I want it to go to the person who has served me as a thank you for their service. This is a basic issue of fairness. Tips are meant as a bonus.’

Derek Simpson, Unite joint general secretary, says: ‘There is now an urgent need for the hospitality industry to be transparent in how they handle the tips and service charge money left for staff.’

As of 1 October the new minimum wage for workers aged 22 and over has increased to £5.80 from £5.73 an hour. The rate for 18 to 21-year-olds has risen to £4.83 from £4.77, while 16 to 17-year-olds must now be paid £3.57 as opposed to £3.53.