Why do British restaurants call their automatically added service charges anything from “optional” to “discretionary”?

1. What is a discretionary service charge in a restaurant?
2. Can you remove a discretionary service charge?
3. Can a restaurant automatically add gratuity?
4. Can restaurants add service charge?
5. Can I refuse to pay service charge?
6. Can I refuse to pay service charge property?
7. Does service charge go to staff?
8. What is the average service charge for a flat?
9. How is a service charge calculated?
10. Can you refuse to pay automatic gratuity?
11. Do you still tip if gratuity is added?
12. Is a service charge the same as gratuity?

What is a discretionary service charge in a restaurant?

A discretionary service charge is an amount that is added to your bill in a restaurant to pay for the work of the person who comes and serves you. You can decide if you want to pay it. A discretionary service charge may be added to your check to reward good service.

Can you remove a discretionary service charge?

You can always ask them to remove the discretionary charge but they will probably wonder / ask what was wrong with the service. ... Nothing wrong with a 12.5% discretionary tip on the bill, as long as you have had good service then that would be the normal tip expected in a restaurant.

Can a restaurant automatically add gratuity?

The short answer is that yes, automatic gratuity is legal. Laws instated by the IRS rule that automatic gratuity is a service charge, and there is no legislation that prohibits this practice. This being said, state laws may differ on if this charge is compulsory.

Can restaurants add service charge?

If service charge is added in the pricing of food or anything that you have ordered then it becomes difficult to refuse. But you can refuse to pay service charges if food or service given by restaurant is not proper or has any deficiency in that.

Can I refuse to pay service charge?

The short answer to your question is that yes the law does say that affordability is relevant to whether a service charge bill is legally due for payment, however, in practice is likely to be very difficult for a leaseholder to convince a First Tier Tribunal (previously known as Leasehold Valuation Tribunal) to reduce ...

Can I refuse to pay service charge property?

If you can't pay your service charge, or you've fallen into arrears, you should contact the landlord or management company of your property to discuss your options for repaying the arrears. If you don't take steps to deal with the arrears, the freeholder could take court action and you could lose your home.

Does service charge go to staff?

There are no laws about splitting tips and service charges, but the British Hospitality Association (BHA) has a code of practice. ... It also says that discretionary service charges and non-cash tips are usually paid to employees with tax deducted, just like wages.

What is the average service charge for a flat?

ARMA (the Association of Residential Managing Agents) estimates the average service charge bill in London at around £1,800 to £2,000 a year. This will of course vary around the country but anything over £5,000 is expensive and you should definitely be asking questions.

How is a service charge calculated?

The amount of service charges you pay is based on the gross value of the flat, which is a percentage of the total gross value of all the flats in the building. ... The service charge year runs from 1 April to 31 March.

Can you refuse to pay automatic gratuity?

For example, some courts have found that automatic "tipping" is not enforceable. So if a patron chooses not to pay this tip, he can and the restaurant cannot go after him for theft charges. ... Because of this, many restaurants instead call their auto-gratuity a "service charge," typically reserved only for large groups.

Do you still tip if gratuity is added?

Service is almost never included in the bill. If it is, it will say "Gratuity" or "Service Charge" with an amount next to it. If an amount is included as a "Gratuity" or "Service Charge," tipping is not required.

Is a service charge the same as gratuity?

So, what's the difference — A service charge is mandatory and it is pre-determined by the hotel or vendor. The gratuity is at the discretion of the bride or groom.