The Tips Bill gains Royal Assent and becomes law
03 May 2023
The Employment (Allocation of Tips) Bill has become an Act of parliament (law) by gaining Royal Assent on 2 May 2023. The Bill imposes unlawfulness for employers to withhold tips from staff and is expected to come into force in 2024.
It has been reported that more than two million workers across the hospitality, leisure and services sectors will have their tips protected and be able to view an employer’s tipping record. In addition, helping to also ease cost of living pressures, an estimated £200 million a year will go back into the pockets of diligent staff by retaining tips that would have otherwise been deducted.
Business and Trade Minister, Kevin Hollinrake said:
‘‘As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees.
Whether you are pulling pints or delivering a pizza, this new law will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.
I want to thank Dean Russell MP, Virginia Crosbie MP and all the campaigners who have helped make the Tipping Bill a reality and improved the lives of workers across the UK.’’
Through the Act, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. Workers will receive a new right to request more information, relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal. However, businesses should act now to ensure that they are compliant when the new conditions come into force. An audit of current practices may be essential, to ensure that 100% of tips and service charges are allocated to relevant workers within the time period required.
You can read more on the topic of tips here and the full press release can be found here.
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