Private Members 'Tips' Bill receives Government Backing

The Employment (Allocation of Tips) Bill, introduced by Dean Russell MP has today (Friday 15th July) undergone its ‘second reading’ in the legislative process and has now been backed by the government.

The aim of the Bill is to ensure that all tips go to staff by making it unlawful for businesses to hold back well-earned service charges from their employees.

Dean Russell, Conservative MP for Watford, said:

“I am delighted that my Tips Bill has passed second reading in Parliament. It is fantastic that we are on track to securing a fair deal for millions of people working in hospitality across the country.

It has always felt wrong that some employers have retained tips intended for their staff. This new legislation will halt this practice, particularly given the current challenges around the cost of living. I would like to thank all of the businesses and stakeholders that have got in touch to voice their support.

The move towards a cashless society has exacerbated the problem of companies keeping card tip payments for themselves, and today’s measures, once in law, will ban that practice.”

UK Hospitality Chief Executive, Kate Nicholls, said:

“Tips and service charges provide a significant and welcome boost to hospitality employees’ take-home cash. So we’re delighted to see this proposed legislation recommend that employers can set a fair distribution policy for staff, meaning they all benefit. This should also reassure prospective hospitality sector workers at a time when the industry is seeking to fill vacancies.”