Waiting staff should receive their tips in full and it should be clearer to customers that gratuities are optional, the business secretary has said.

Sajid Javid said a tip had to “go to the people you intended it to go to” and announced proposals to stop or limit employer deductions from tips.

It follows claims that some restaurant chains were regularly holding back some or all of the tips meant for staff.

The Unite union said it was a “victory” for staff but should be backed in law.

According to BBC’s story, Currently, there is no legal requirement for firms to hand over gratuities to their waiting staff.

There are almost 150,000 hotels, pubs and restaurants in Britain, employing about two million people.

Announcing a two-month consultation on proposals that the government said would stamp out unfairness, Mr Javid told the BBC: “Too many people were finding that when they were leaving tips for hardworking people they weren’t actually going to those people.

“That’s unacceptable. It’s got to go to the people you intended it to go to, it’s got to be a transparent process, it’s also got to be voluntary for good service.”

The proposals include:

• making it clearer for customers that tips are optional
• preventing or limiting any employer deduction from tips except for those required under tax law
• and updating the existing voluntary code of practicefrom the government and putting it on a statutory footing to increase employer compliance

Mr Javid said the government would also look at legislation “if necessary”.