Government set to announce changes to tipping laws

The government will soon make an announcement on changes to the law around how hospitality tips are handled.

It follows a report in the Mail on Sunday that said businesses will be banned from keeping any part of the service charge when it is paid by customers by card.

A government spokesperson said: “We are doing everything we can to back hospitality staff as the sector recovers.

“Workers should get the tips they deserve, and customers should have reassurance that their money is rewarding staff for their hard work and good service. Further announcements on this key issue will be made shortly.”

Earlier this year Conservative MP Dean Russell brought forward a Private Members Bill that sought to make it law that all hospitality tips went directly to staff.

The government committed to deliver an Employment (Allocation of Tips) Bill to ban employer deductions from tips in the Queen's Speech in 2019. However, it was not mentioned again in her speech in May.

Five years ago the then business secretary Sajid Javid led a consultation into tips, service charges and troncs; and former prime minister Theresa May said a ban on employers making any deductions would be introduced at "the earliest opportunity”.

Any moves to legislate have previously been opposed by industry body UKHospitality.