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The Employment (Allocation of Tips) Act 2023, also known as the Tips Bill, has received Royal Assent this week.
The bill will help to ensure that workers in the hospitality industry receive the tips and gratuities given by customers, rather than businesses retaining them. The legislation will protect the rights of staff and will ensure that they receive their fair share of tips and gratuities.
Whether you are making coffee or delivering a handmade cake, this new law will ensure that staff receive fair pay for a fair day’s work. It also means that customers know that the staff member will receive the tip they leave.
Mr Fell said: “I was pleased to back the Tips Bill which will ensure fairness for hospitality workers across Furness, and those Furness residents who work in the Lake District.
“Hospitality presents some fantastic career opportunities, and staff deserve to be rewarded for excellent service. It is right, therefore, that every penny that customers tip will now be required in law to go the staff members who’ve done the hard work, and not be retained by the business, making hospitality an even more rewarding career choice for local people.”
UK Hospitality Chief Executive Kate Nicholls said: “Fantastic hospitality experiences don’t happen without a huge effort from our teams, both front and back of house, and tips are a generous way of customers showing their gratitude, while providing a welcome boost to employees’ earnings. Tips are just one part of what makes working in hospitality a great job and career.
“We’re pleased to support this new piece of legislation as it comes into law today and look forward to working with Government and other stakeholders on a code of practice that ensures a fair distribution of gratuities amongst all who contribute to providing great hospitality.”
