Hospitality staff set to keep all tips under UK government rule change

tips

All tips will go to all staff working in hospitality across Britain under new plans to overhaul tipping practices set out by the UK government that are expected to come into force within the next year.

It plans to make it illegal for hospitality firms to withhold tips from workers and if an employer breaks the new rules they can be taken to an employment tribunal where operators could be forced to compensate workers or face fines.

In a statement, the Department for Business said that the new legislation would help about two million people working in the hospitality industry.

Commenting on plans for new tipping legislation Kate Nicholls, CEO of UKHospitality said, “UKHospitality supports the right of employees to receive the deserved tips that they work incredibly hard for. The hospitality sector as it begins to rebuild after 18 months of restrictions and enforced enclosure is already creating new jobs and driving the jobs recovery.  Ensuring employees receive the tips they earn will further strengthen the sector’s ability to create jobs and support the wider economic recovery.
“For hospitality businesses, though, customers tipping with a card incurs bank charges for the business, and many also employ external partners to ensure tips are fairly distributed among staff. With restaurants, pubs and other venues struggling to get back on their feet, facing mounting costs and accrued debts, we urge the Government to continue to work closely with the sector as it introduces this legislation to ensure this works for businesses and employees.”

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