New law would safeguard 100% of tips for hospitality workers

Wednesday, 02 Oct, 2024 0

Potentially millions of hospitality workers could benefit financially under a new proposed law which prohibits employers from withholding tips from workers.

Workers must receive all customer tips be it in cash or via a card payment.

It would likely benefit hospitality workers most, such as restaurant and hotel staff, taxi drivers and tour guides.

Staff will be able to file compensation claims to an employment tribunal when companies are accused of withholding tips.

The new law requires all tips should be added to employee salaries at the end of the following month they were received.

However, tips will still be taxable.

“I’m delighted about the new law because it gives people on the lowest forms of income and shiftwork a level of protection,” said Tom William, who previously worked for a chain restaurant firm.

“There’s such high turnover in these professions.'”

“These are the lowest paid workers in the British economy and they are going to benefit massively from this,” Bryan Simpson, Unite’s hospitality organiser told the BBC.

Service staff will be able to request a breakdown of how tips are being distributed every three months.

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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