Requirement for all employers to pass on tips to workers

All tips will go to staff under new plans to overhaul tipping practices set out by the UK Government.

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 UK Government will make it illegal for employers to withhold tips from workers. 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.

For further information visit GOV.UK.

Source: Business Wales news https://businesswales.gov.wales/news-events

Posted on: Friday 1st October 2021