Restaurants banned from taking staff tips under new legislation
Pub and restaurant workers will be entitled to all of their tips under fresh government plans, impacting 2m employees.
The government set out new legislation that would overhaul tipping practices on Friday, in a show of support for workers after their sector was hit hard by the pandemic.
Employers will be banned from withholding tips from workers. As it stands, bosses can currently choose to keep part or all of a discretionary service charge added to customers’ bills.
Chains to come under fire for keeping tips from waiting staff in recent years have included American diner chain TGI Fridays and Pizza Express.
The legislation will include a requirement for all employers to pass on tips to workers without any deductions.
What’s more, a statutory code of practice will set out how tips should be distributed to ensure fairness and transparency.
Workers will also be given the right to request information relating to an employer’s tipping record, helping them with employment tribunals.
Labour markets minister Paul Scully said: “Unfortunately, some companies choose to withhold cash from hardworking staff who have been tipped by customers as a reward for good service.
“Our plans will make this illegal and ensure tips will go to those who worked for it. This will provide a boost to workers in pubs, cafes and restaurants across the country, while reassuring customers their money is going to those who deserve it.”
Many operators are hit with bank charges when customers tip by card, trade body UKHospitality said.
“With restaurants, pubs and other venues struggling to get back on their feet, facing mounting costs and accrued debts, we urge the Government to continue to work closely with the sector as it introduces this legislation to ensure this works for businesses and employees,” Kate Nicholls, UKHospitality CEO, added.
Unite the Union said a five-year delay in the government banning the practice – which was first promised in 2016 – had resulted in waiting staff losing an estimated £10,000 in lost tips.
A survey of Unite’s Pizza Express members found that waiting staff were losing £2,000-a-year in lost tips, or an estimated £10,000 since 2016.
Unite general secretary Sharon Graham welcomed news of the legislation but said it was “shocking” that the predominantly young workforce had been forced to wait for years.