Millions of UK workers are set to receive a boost and take home more of their hard-earned cash under new legislation introduced by Dean Russell MP, and backed by the government, banning employers from withholding tips from their staff.
Despite most hospitality workers – many of whom are earning the National Minimum Wage - relying on tips, there are still many businesses who fail to pass on service charges from customers to staff.
Dean Russell’s Tips Bill, which passed its second reading in parliament today, will ensure that all tips go to staff by making it illegal for businesses to hold back service charges from their employees.
This overhaul of tipping practices, once set in law, is set to benefit around 2 million UK workers across the hospitality, leisure and services sectors and will help to ease pressures caused by global inflation and an increase to the cost of living.
Through Dean’s Bill, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. On top of this, 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.
The move towards a cashless society has undoubtedly the problem of some employers retaining card tip payments, and today’s measures, once in law, will ban that practice.
Speaking after his success in the Commons Watford’s MP said “I am delighted that my Tips Bill has passed second reading in Parliament. It is fantastic that we are on track to securing a fair deal for millions of people working in hospitality across the country.
It has always felt wrong that some employees have retained tips intended for their staff. This new legislation will halt this practice, particularly given the current challenges around the cost of living. I would like to thank all of the businesses and stakeholders that have got in touch to voice their support.”
Dean’s Bill comes at a time when there are more employees on payrolls than ever before – and unemployment has reached an all-time low.
The Tips Bill will now proceed through the stages of passage in Parliament, prior to receiving Royal Assent and becoming law.
