May 6th, 2023
Millions of Hospitality Staff will now take home more cash as a new law on tipping passes.
Withholding tips from staff has now become unlawful as the Tipping Bill achieves Royal Assent. This means that more than 2 million workers will now have their tips protected.
This is estimated to equate to an additional £200 million more per year for UK workers as the bill makes it unlawful for employers to withold tips under the Employment (Allocation of Tips) Act 2023, which received Royal Assent earlier this week.
January 21, 2023
A long-delayed plan to ensure hospitality workers receive their tips in full has cleared the Commons with cross-party support, and will now proceed to the Lords for further scrutiny.
A government consultation launched in 2015 found that restaurant customers were overwhelmingly in favour of the tips they paid going to the people who served them.
The Employment (Allocation of Tips) Bill would enable the Government to create a code of practice to ensure fairness and transparency in how tips are allocated amongst staff, including an enforcement mechanism for employees who seek to make complaints about how tips are paid.
The Employment (Allocation of Tips) Bill would also introduce a legal obligation on employers to ensure all tips, gratuities and service charges are paid to workers in full. The proposal has now made progress via a private member’s bill which received its third reading in the Commons last Friday. Under the new bill we would see the following changes introduced:
- All tips and service charge must be paid to employees, and all administrative costs must be covered by the business
- All monies received by the customer must be paid by the end of the month following the month of receipt
- Agency staff must be paid tips and service charges on the same basis as directly employed staff
- Businesses must keep more detailed records about tips and service charges
Keen to know more? You can read the bill in it’s entirety here.