New Legislative Proposal on Tips Earned in the Hospitality Industry

The secretary of state for Business, Energy and Industrial Strategy what the timeline is for the implementation of the reforms to tipping practices announced in September 2021.

Paul Scully, Parliamentary under-secretary (Department of Business, Energy and Industrial Strategy) Minister of state (London), said Tips earned by workers should go to the workers they were intended for. He vowed that the government will bring forward legislation requiring employers to pass all tips to workers as soon as parliamentary time allows.

This legislation will require employers to pass on all tips, gratuities, and service charges to workers without any deductions. Employers will be required to distribute tips in a fair and transparent manner, where employers have control or significant influence over tip distribution. There will be a new right for workers to make a request for information relating to an employer’s tipping record, to enable them to bring forward a credible claim to an employment tribunal.

The government anticipates the new rules to commence no earlier than one year after legislation has passed, giving employers sufficient lead-in time to adjust their business practices.

As yet the date for implementation is to be confirmed, but is one to watch out for in the future.