Government rumoured to have scrapped planned changes to tipping laws

Speculation is growing that the government plans to backtrack on plans to ban hospitality businesses taking a cut of staff tips or service charge.

 

Legislation to make it illegal for operators to withhold any part of tips was announced in September 2021.

 

The move was expected to benefit around two million people working in the hospitality, leisure, and services sectors.

 

At the time, labour markets minister Paul Scully said the law would reassure customers their money was going to “those who deserve it”.

 

Now it looks like that the plans have been removed from the Queen’s Speech at next week’s State Opening of Parliament on 10 May, according to “government insiders” quoted by the Financial Times.

 

Unite, the trade union representing hospitality workers, has reacted angrily to news to the possible scrapping of a transparent tipping policy.

 

Sharon Graham, Unite general secretary, said tipping misappropriation is “another abuse” in an industry where workers can lose “thousands of pounds a year from their earnings” when the employer refuses to hand over the tips.

 

“Every year this government promises action to ensure fair tipping - and then does precisely nothing to deliver on that promise.”

 

A spokesperson for the Department for Business, Energy & Industrial Strategy said they could not confirm or deny the contents of the Queen’s Speech. “Workers should absolutely get the tips they deserve, and customers should have reassurance that their money is rewarding staff for their hard work and good service.”

 

The decision by the government last year to move forward with tipping legislation follows on from the announcement in 2016 by then business secretary Savid Javid that a consultation into tops, services and troncs would take place.

 

It was suggested that workers would be given rights to request information relating to an employer's tipping record and take them to an employment tribunal to seek compensation if they break the rules.

 

Additionally, it was announced that a statutory code of practice would be introduced setting out how tips should be fairly distributed.

 

Kate Nicholls, chief executive of UKHospitality, said: “Notwithstanding that [plans to scrap tipping legislation] remains speculation ahead of the Queen’s Speech, UKHospitality fully supports fair tipping for staff and recognises how important it is that there’s complete transparency when it comes to tips, tipping practices, and the fair distribution of them among workers.”

 

She added that the industry has already acted of its own accord to make tipping clearer and fairer, including working closely with unions.

 

“It’s also important to point out that hospitality sector wages rose steadily on average in the three years pre-Covid, and continue to go up. We hope that those increases, coupled with the attraction of tips, will carry on bringing people into the industry.”

 

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