Are you legally obliged to pay a service charge (especially for a group) that has been added to your bill in a restaurant?

I don’t mind if you’ve had good service, but when service has been mediocre or poor, I normally would not leave a tip. If I just pay for what the group has eaten, am I obliged to pay the service charge too, or is that at my discretion?

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3 Responses to “Are you legally obliged to pay a service charge (especially for a group) that has been added to your bill in a restaurant?”

  1. chrisgallahan - December 11th, 2009

    Often there will be small print somewhere on the menu saying if gratuities are added – if so I think you have to pay. Otherwise it may say at your discretion in which case you choose. If the service was really not up to standard a word in the ear of the management about the tip in either case might clarify things.

  2. gorecki36 - December 11th, 2009

    There are two important points of law here. The law provides that you should be given a chance to check the prices before you get to your table, as well as having a menu at the table. Any minimum charge or service charge must be clearly shown, as prominently as the food prices. The charge must be clearly indicated before you get to your table (either outside the building or immediately inside the door) as well as on the menu. If these charges aren't there and on your menu and you were not otherwise told, you can refuse to pay if they are added to your bill. They are not part of your contract.

    If they are displayed you must pay then unless they are unreasonable for the standard of the restaurant. When you’re eating out you have a right to expect a certain standard of service. When you book a table in a restaurant, or sit down to eat, you enter a contract with the provider of the service. If you don’t get that level of service the restaurant could be in breach of contract. The law gives you a right to a refund or compensation in some circumstances.

    Under the Supply of Goods and Services Act 1982 you have a right to expect food and service to be of satisfactory quality and ‘as described’. Bear in mind that the quality of service should match the type of establishment in which you are eating. So you shouldn't expect the same quality of service from a burger joint as you would from a restaurant in a five-star hotel nor would you expect the same level of service charge.

    If the compulsory service charge is not clearly shown you are within your rights not to pay it. You could also report the restaurant to Trading Standards as unclear or misleading pricing is a criminal offence, according to the Consumer Protection Act 1987 and the Price Marking Order 2004. Most restaurants will not wish to run this risk, but frankly there are few examples of prosecutions beings successfully taken. Trading Standards Officers claim they are too overworked with other problems to deal with this type of prosecution.

    If the service is not of the standard expected, you can refuse to pay the service charge or part of it. So long as you have a genuine reason for not paying and you leave your name and address, you have not acted in any way dishonestly. If the restaurant owner threatens to call the police, tell him he is welcome to but this is a civil matter. His only recourse is to sue you for the unpaid part of the bill.

    If you tell him you are more than willing to discuss the matter if he wants to (in a loud voice in the middle of his restaurant), he will probably decide to let you go. Not many restaurants would welcome the publicity of having to go to court over an unpaid service charge either.

    See these links for more information:
    http://www.thesite.org/homelawandmoney/law/yourrights/restaurantrightsthebill
    http://www.which.co.uk/reports_and_campaigns/consumer_rights/reports/Consumer%20rights%20and%20problems/Problem%20areas/Restaurants/Restaurants_657_120238_2.jsp

  3. CathyScott - December 11th, 2009

    one thing to add to the excellent answer above

    Never fail to leave a tip if you are not happy with service – instead leave a 1 pence tip – that way they know you are unhappy – otherwise they may just think you forgot to leave one.

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