By Linda Hall • 04 May 2023 • 14:00
HOSPITALITY INDUSTRY: Tips will go to staff by law
Photo credit: Pixabay/Arttabel
More than two million workers will have their tips protected and they will also be able to view an employer’s tipping record.
An estimated £200 million (€227 million) a year will now return to staff pockets as employers are banned from withholding tips under the Employment (Allocation of Tips) Act 2023.
Hospitality workers rely on tips but are often powerless if businesses fail to pass on customers’ service charges to staff.
The new measures are due to come into force in 2024.
This overhaul of tipping practices will benefit at least two million workers in the UK across the hospitality, leisure and services sectors, helping to ease cost of living pressures and giving them peace of mind, knowing that they will keep their hard-earned money.
“As people face rising living costs, it is not right for employers to withhold tips from employees,” Business and Trade Minister Kevin Hollinrake said.
“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 customers can be confident their money is going to those who deserve it.”
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Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share?
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