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.
Rebecca Harris was proud to support the campaign and knows how important this law is to her residents in Castle Point who work in the hospitality sector. The Tips Bill was introduced as a Private Members Bill by Watford’s Dean Russell MP following several years of 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 the agreement that tips, gratuities and service charges should go to workers, rather than employers. Tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently. The Government made this clear by announcing its intention to legislate on this and confirming its support of this Private Members’ Bill.
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.
Rebecca Harris MP said:
“I was pleased to back the Tips Bill which will ensure fairness for hospitality workers across Castle Point. As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees. Tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently.
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.”
Dean Russell, Conservative MP for Watford said:
“I was really honoured to have the support of so many colleagues from across the House of Commons and the House of Lords, including Rebecca Harris to make the Tips Bill a reality. Without Rebecca’s support combined with Government backing and the work of Virginia Crosbie MP and Lord Robathan this Bill would not have happened. Thanks to this team work ,the lives of many people will be changed in my constituency in Watford and Castle Point. Staff members will know that the tips they receive for working hard will be received by them, and not retained by the business.”
The measures in the Employment (Allocation of Tips) Act 2023 will come into force via secondary legislation. The Government expects the measures to come into force around a year after Royal Assent and will confirm the date of commencement later this year. The measures in the Act will be supported by a statutory Code of Practice. This Code is being developed and will be subject to formal consultation later this year. For more information on the Employment (Allocation of Tips) Act 2023, including comments from the Business and Trade Minister, please visit: https://www.gov.uk/government/news/millions-to-take-home-more-cash-as-new-law-on-tipping-passes.
Anyone who has concerns about their current or recent employer can contact the Acas helpline on 0300 123 1100.
Continued Cost of Living Support…
Today’s Royal Assent follows a range of Government actions to support people with the cost of living and help those on lower incomes keep more of what they earn. Most notably, last month the National Living Wage increased by 9.7%, keeping the Government on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024, provided economic conditions allow.
Further recent Government action to support households with the cost of living includes extending the Energy Price Guarantee at its current level for another three months, which keeps energy bills at £2,500 for a typical household until the end of June. The Government has also extended the freeze on fuel duty, saving the average car driver in the UK £100 over the next year.
