Pizza Express is to remove an 8% administration fee on staff tips made by card, the company has announced.
The fee will stop on October 6 and follows a campaign by unions to allow restaurant workers to keep tips left by customers.
Pizza Express said a new automated system will be introduced across its 430 restaurants, which employ 10,000 staff.
Tips made by cards will be "fully distributed" among employees, said the firm.
The firm's chief executive Richard Hodgson said: "We recognise that our team members are critical to delivering the fantastic customer experience that Pizza Express has built over many years.
"As a leader in the casual-dining industry, we're committed to best practice and to ensuring that our people are properly rewarded for the valuable contribution they make to our business.
"We have always been, and will continue to be, transparent about our tipping policies. We also agree with calls for greater clarity across the industry in order to ensure that staff are given a fair deal, and to enable customers to make an informed choice when it comes to tipping.
"We want people to recognise that this is a company that values employees and offers long-term opportunities. I'm committed to ensuring that we continue to work on improving the image of our sector, and to ensure we appeal to talented, ambitious people with the right mix of skills.
"We are playing our part by investing heavily in apprenticeships and the creation of 2,500 new jobs over the next few years and we welcome the Government's decision on the Living Wage which we will be adopting in full."
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