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Harrods stops taking cut of tips in its restaurants after protests

Store was targeted by United Voices of the World union after keeping half the discretionary 12.5% service charge

Luxury department store Harrods has agreed to let staff keep 100% of the money raised from restaurant tips following a union campaign.

The store was targeted by protesters earlier this month after it emerged that the retailer, which is owned by Qatar’s sovereign wealth fund, kept 50% of the discretionary 12.5% service charge automatically added to diners’ bills. The retailer has also announced that it is reducing its service charge rate to 10% to give customers more discretion over the amount they wish to contribute.

Related: Harrods workers say company keeps up to 75% of restaurant service charge

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