The government is due to introduce new legislation that will make withholding tips from workers illegal.
The move is set to support roughly two million people working across 190,000 hospitality, leisure, and service sector businesses.
Launched today (24 September), the plans include the requirement for all employers to pass on undeducted tips, a statutory code of practice establishing how tips should be distributed, and new workers’ rights to request for employer tipping records.
Paul Scully, Labour markets minister, 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.”
The legislation will include card payments, which now comprise 80% of all UK tipping, and have made it easier for businesses to keep the funds.
Responding to the government’s announcement, UKHospitality said that it “supports” the measure that will “further strengthen the sector’s ability to create jobs and support the wider economic recovery”.
Kate Nicholls, chief executive at the industry body, also urged the government to “continue to work closely with the sector” as the legislation is introduced to “ensure this works for businesses and employees”.