Proposed legislation relating to Tips

In 2018 it was announced that the government intended to bring in legislation to ensure tips left for workers go to them in full and to ensure that workers receive a fair day’s pay for a fair day’s work.

This legislation is being introduced to combat poor/unfair tipping practices, including excessive deductions being made from tips left by customers. It is estimated to benefit around 2 million workers, employed in around 190,000 businesses in the hospitality, services and leisure sectors.

The Government also believes all tips should be discretionary and it should be clear to customers that they are voluntary. The legislation will also ensure that customers know tips are going in full to workers and not business.

Overview of the proposed legislation:

• Requirement for all employers to pass on tips to workers without any deductions
• Requirement for employers to distribute tips in a way that is fair and transparent
• Requirement for employers to comply with a statutory Code of Practice on tipping
• New right for workers to make a request for information relating to an employer’s tipping record, enabling them to bring forward a claim to an employment tribunal

When will this be legislated?

There is currently no effective date of this legislation. It has been advised that new legislation is to be introduced at the earliest opportunity.  Please keep an eye on future marketing materials for further updates.