1st October 2024
Millions of hospitality workers are now entitled to keep the fiull value of theri tips as a new law on tipping becomes effective today.
Restaurants, coffee shops, cafes, pubs and other hospitality venues will be banned from withholding tips from their staff. Cash tips were already protected, but the new legislation extends this to cover card payments.
The law was initially set to come into effect from July but was delayed. The new law is estimated to see around £200m put back into the pockets of workers each year through tips, gratuities and service charges. Under the new legislation, if an employer breaks the rules, they could be taken to an employment tribunal that could result in fines and potential compensation payments.
As part of the new rules, employees have the right to request information about an employer’s tipping record. This will allow them to bring credible claims to an employment tribunal if the rules are not followed. Employers are also not allowed to alter someone’s salary or hourly to include gratuities so they cannot count towards the minimum wage.
Tips must also now be paid within one month and they must be allocated fairly between all workers, including those on zero-hour contracts.