New law all restaurants, pubs, hairdressers and taxis must follow from todayUnder new rules which come into force today, restaurants will be banned from withholding tips from staff
Cash tips are already protected but now card tips will now be protected under new law
Under new rules which come into force today (October 1), businesses will be banned from withholding tips from staff. Firms including restaurants, pubs, hairdressers and taxi operators are set to be impacted by the new law requiring 100% of tips to be shared between employees from Tuesday.
However, hospitality industry bosses have suggested the move could hit under-pressure businesses with an “additional cost”. The law means tips must be passed to employees by the end of the following month from when they were received.
The rules will apply to any business across the hospitality industry which allows tipping and means more than two million workers will be able to keep hold of an estimated £200m a year that is paid by customers in tips, gratuities and service charges. Under the new law:
Employers must pass on tips to workers without any deductions and a draft statutory code of practice sets out how tips should be distributed to demonstrate fairness and transparency.
Employers should have a written policy on tips and record how they manage them. Workers will have rights to request information about an employer's tipping record – this will allow them to bring credible claims to an Employment Tribunal.
Employers also can't alter someone's salary or hourly rate - and tips don't count towards the minimum wage.
Tips must also now be paid within one month.
Kate Nicholls, chief executive of industry body UKHospitality, said: “The people working in hospitality are the lifeblood of our sector and these changes rightly ensure tips hard-earned through excellent service will end up entirely in their pockets.
“We completely support the changes coming into effect today, which will formalise what is already commonplace in the sector as businesses have been preparing for this legislation for a number of years.
“New rules naturally come with an administrative burden and businesses will see some additional cost as they work through them in practice.
“It’s another example of costs being placed on a sector that can least afford it, and we continue to urge the Chancellor to bring down hospitality’s cost burden at the Budget, primarily through taking action to avoid the billion-pound business rates bombshell set to hit the sector next year when relief ends.”
From October 1, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal. It comes eight years after a Government report first suggested the policy could be introduced following a review.
Justin Madders, minister for employment rights, said: “This is just the first step of many in protecting workers and placing them at the heart of our economy. We will be introducing further measures on tipping to ensure workers get their fair share of tips.”
Andrew Tighe, director of strategy and policy at the British Beer and Pub Association (BBPA) said: “This new framework will introduce a level playing field for all businesses, ensuring that those who were not already passing on all tips to their staff will now be required to. A greater degree of consistency and transparency when dispersing tips will benefit both existing and new staff alike.”
source:
https://www.liverpoolecho.co.uk/news/uk-world-news/new-law-restaurants-pubs-hairdressers-30040193
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