Tipping legislation a step closer to becoming law

A bill that will ban hospitality businesses from holding back staff tips and place strict controls on how service charge is managed is on track to become law after gaining cross-party support in the House of Commons.

The Employment (Allocation of Tips) Bill had its final reading in in the Commons today and will now go forward to the House of Lords. If approved in the upper house, it is expected to achieve royal assent in spring when it will become law.

The government had originally launched a consultation into tipping practices in 2015. After several delays the Employment (Allocation of Tips Bill) was introduced to Parliament as a private member’s bill by Dean Russell, MP for Watford.

After the bill was approved by the House of Commons today he tweeted: “One step closer to ensuring millions of UK workers will receive their hard-earned tips and gratuities.”

When the bill was presented in July 2022 UKHospitality chief executive Kate Nicholls had said: “Tips and service charges provide a significant and welcome boost to hospitality employees’ take-home cash. So we’re delighted to see this proposed legislation recommend that employers can set a fair distribution policy for staff, meaning they all benefit. This should also reassure prospective hospitality sector workers at a time when the industry is seeking to fill vacancies.”

Last week Peter Davies, managing director of WMT Troncmaster Services, who will speak at The Caterer's Tipping and Payment webinar on Tuesday 21 February, highlighted five key points from the Employment (Allocation of Tips) Bill that operators should be aware of.

To sign up to attend the free webinar, click here.

Photo: Drazen Zigic/Shutterstock