Search
Close this search box.

New tipping legislation requires all employers to pass on tips to workers without any deductions

The government has unveiled plans to overhaul tipping practices. Most hospitality workers – many of whom are earning the National Minimum Wage or National Living Wage – rely on tipping to top up their income. But research shows that many businesses that add a discretionary service charge onto customer’s bills are keeping part or all of these service charges, instead of passing them onto staff.

The government has unveiled plans to overhaul tipping practices. Most hospitality workers – many of whom are earning the National Minimum Wage or National Living Wage – rely on tipping to top up their income. But research shows that many businesses that add a discretionary service charge onto customer’s bills are keeping part or all of these service charges, instead of passing them onto staff.

The government will make it illegal for employers to withhold tips from workers. The move is set to help around 2 million people working in one of the 190,000 businesses across the hospitality, leisure and services sectors, where tipping is commonplace and can make up a large part of their income.

This will ensure customers know tips are going in full to workers and not businesses, ensuring workers receive a fair day’s pay for a fair day’s work. The legislation will include:

  • a requirement for all employers to pass on tips to workers without any deductions
  • a Statutory Code of Practice setting out how tips should be distributed to ensure fairness and transparency
  • new rights for workers to make a request for information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal

Under the changes, if an employer breaks the rules they can be taken to an Employment Tribunal, where employers can be forced to compensate workers, often in addition to fines.

Read more

Latest News

Read More

Expert tips for spring cleaning CV and career

29 March 2024

Newsletter

Receive the latest HR news and strategic content

Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

Latest HR Jobs

University of Warwick – WMGSalary: £23,144 to £25,138 per annum This provides summary information and comment on the subject areas covered. Where employment tribunal and

The Open University – People ServicesSalary: £57,696 to £64,914 + up to £8,000 per annum MRP supplement* This provides summary information and comment on the

Cardiff UniversitySalary: Competitive This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information

University of Oxford – Oxford Department of International DevelopmentSalary: £28,759 to £33,966 (Grade 5) This provides summary information and comment on the subject areas covered.

Read the latest digital issue of theHRDIRECTOR for FREE

Read the latest digital issue of theHRDIRECTOR for FREE