Harrods faces legal action over £1-a-head dining charge not going to staff

Harrods said its compulsory £1-a-head cover charge was in line with ‘other high-demand luxury dining destinations’. Photograph: Directphoto Collection/Alamy

Harrods is facing legal action over its addition of a £1-a-head cover charge to diners’ bills that does not go to workers, in a test case that could lead to changes at a string of upmarket restaurants.

Legislation, which came into force in October 2024, requires business owners to hand over all tips and service charges to staff. Some restaurants, including those at Harrods, add a mandatory cover charge as well as an optional service charge and only pass on the latter to their workers.