The Employment (Allocation of Tips) Act 2023 received Royal Assent on 2 May. This bill will help to ensure that workers in the hospitality industry receive the tips and gratuities given by customers, rather than businesses retaining them. The legislation will protect the rights of staff and will ensure that they receive their fair share of tips and gratuities.
Many hospitality workers rely on tips to top up their pay and are often left powerless if businesses don’t pass on service charges from customers to their staff.
This overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors helping to ease cost of living pressures and give them peace of mind that they will keep their hard-earned money.
The Tips Bill was introduced as a Private Members Bill by Dean Russell MP following several years campaigning for the change in law and taken through the final stages in Parliament.
The government, which strongly believes that tips, gratuities and service charges should go to workers, rather than employers, backed the Tips Bill. Tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently.
Richard Fuller MP said:
This new law will ensure that staff receive fair pay for a fair day’s work. It also means that customers know that the staff member will receive the tip they leave.
The measures are expected to come into force in 2024, following secondary legislation. A date will be confirmed later this year. The measures in the Act will be supported by a statutory Code of Practice. This Code is being developed and will be subject to formal consultation later this year.
Anyone who has concerns about a current or recent employer can contact the Acas helpline on 0300 123 1100.
