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.
Jo was proud to support the campaign, and knows how important this law is to residents across the Bury St Edmunds constituency who work in the hospitality sector. The Tips Bill was introduced as a Private Members Bill Watford’s Dean Russell MP following several years campaigning for the change in law and taken through the final stages in Parliament and the Lords with Virginia Crosbie MP and Lord Robathan.
The Government backed the Tips Bill with agreement that tips, gratuities and service charges should go to workers, rather than employers. The Government made this clear since announcing its intention to legislate on this and confirming its support of this Private Members’ Bill.
Commenting, Jo Churchill said:
I am delighted to have supported the Tips Bill, a significant step towards promoting fairness for hospitality workers not only in Bury St. Edmunds but also across the country.
Tips are a way to acknowledge and appreciate the hard work and exceptional service provided by staff. Ensuring fairness and transparency in their distribution is essential.
Whether it's a barista making coffee or a baker delivering a handmade cake, this new law guarantees that staff receive just compensation for their work. It also means that customers know that the staff member will receive the tip they leave.
Dean Russell, Conservative MP for Watford said:
Staff members will know that the tips they receive for working hard will be received by them, and not retained by the business.
Like many across the UK, I have always had reservations that some employers kept tips which were earnt by their staff. This new law will stop this immediately and will ensure that the tips are given to the individual staff member, or team. When the Tips Bill comes into force, it will mean customers never have to ask again if workers will get their tips because they will know 100% will go to the staff.
Business and Trade Minister Kevin Hollinrake said:
As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees.
Whether you are pulling pints or delivering a pizza, this new law will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.
I want to thank Dean Russell MP, Virginia Crosbie MP and all the campaigners who have helped make the Tipping Bill a reality and improved the lives of workers across the UK.
