New government laws will protect tips for millions of hospitality workers

The Employment (Allocation of Tips) Act 2023 will see business owners withholding tips from staff become unlawful, as more than two million workers will have their tips protected.

This will see an estimated £200m a year go back into the pockets of the hard-working staff at a time when employees need the money the most.

The positive news will hopefully ease some of the worrying pressures of the cost-of-living crisis as it will give workers the peace of mind that their hard-earned money will be going straight into their accounts.

The Private Members Bill was introduced by Dean Russell, Conservative MP for Watford, who said: “I am very pleased that my Tips Bill has received Royal Assent.

“Hard-working people working in hospitality in Watford and across the country will be able to retain their tips, knowing that they will now have a fair deal.”

“I have always had reservations that some employers kept tips which were earned by their staff.”

Business owners will be expected to hold a tipping record under the new law, which is available to be viewed by employees to ensure that they’re rewarded for the positive service and will also make sure tips are distributed transparently and fairly.

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.”

These measures are expected to come into force in 2024.

The new legislation is incredibly welcomed and will deservedly recognise the hard work that staff do to deliver a memorable service and preserve the eco-system of the hospitality industry.

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