The Tips Bill, a new law that will benefit millions of workers to keep their tips and gratuities, reached a major milestone today.
I have sponsored the Employment (Allocation of Tips) Bill which was first introduced by Watford MP Dean Russell and I'm delighted that it was voted through the House of Commons today - Friday 20th January 2023 - and is now a step closer to becoming law.
Through the Bill, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. In addition, workers will receive a new right to request more information relating to an employerโs tipping record, enabling them to bring forward a credible claim to an employment tribunal. Agreements can also be made to divide the tips fairly to ensure staff working behind the scenes are included, as kitchen and cleaning staff for example, can often go unrecognised.
The overhaul of tipping practices will ensure millions of UK workers will be able to take home more of their hard-earned cash by preventing employers from withholding tips from their staff.
Despite most hospitality workers โ many of whom are earning the National Minimum Wage - relying on tips, there are still many businesses who fail to pass on service charges from customers to staff.
It is not fair that workers do not receive the tips they have earned, and I am really pleased I am playing my part in making sure this unfairness ends as this bill enters its final stages in parliament.
In places like Anglesey where hospitality is a big part of the economy, I know many restaurant, cafรฉ and pub staff will be really pleased this is likely to happen.
Customers too will now have confidence their hard-earned money is going to the place they wanted it to go.
The Bill will now pass through the remaining stages in the House of Lords before passing into law.
