Tips Theft Made Illegal: New Law Protects Over 2 Million Workers
From today, bosses who keep staff tips are breaking the law. The Tipping Bill has gained Royal Assent, shielding more than 2 million hospitality and service workers across the UK. An estimated £200 million a year will be returned to workers who previously saw their hard-earned tips disappear into employers’ pockets.
End of the Dole Out: Workers to See Every Penny They Earn
- Withholding tips now unlawful after Tipping Bill becomes law.
- More than 2 million workers gain legal right to their tips and access to tipping records.
- £200 million a year estimated to stay in workers’ pockets rather than employer hands.
Hospitality staff often rely on tips to boost their pay packets. Until now, many had no way to challenge employers who withheld service charges or tips. The new Employment (Allocation of Tips) Act 2023 changes that, outlawing any boss’s attempt to keep tips for themselves. The law is expected to kick in during 2024 after further guidance and regulations.
Minister and MPs Praise New Law as Win for Fair Pay
Business and Trade Minister Kevin Hollinrake: “As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees. Whether you’re pulling pints or delivering pizza, this law ensures staff get a fair day’s pay for a fair day’s work. Customers can be confident their money goes to those who deserve it. Huge thanks to Dean Russell MP, Virginia Crosbie MP, and campaigners who made this happen.”
Dean Russell MP (Watford): “I’m delighted my Tips Bill has received Royal Assent. Hardworking hospitality staff across the UK will now keep their tips, ending the frustration of employers pocketing money earned by staff. This law guarantees tips go straight to the individual or team. Thanks to all who supported the Bill.”
Virginia Crosbie MP (Ynys Môn): “I’m proud this law is now in place. It’s about fairness for workers and those who tip. It was never right for some companies to pocket tips when the public wanted their money to go to staff. This will boost wages for lower-paid roles and value vital workers, especially in tourist areas like Anglesey.”
Fairness Backed by Industry and New Worker Rights
The law will introduce a statutory Code of Practice to guide tip distribution fairly. Workers gain the right to request information on employer tipping records, enabling rightful claims if money is withheld.
Kate Nicholls, UK Hospitality Chief Executive: “Great hospitality relies on huge effort from front and back of house teams. Tips are a generous thank-you from customers and a crucial earnings boost. We welcome this legislation and will help develop a code ensuring fair tip distribution among all staff who contribute.”
Government Tackles Cost of Living Across the Board
This Royal Assent comes amid a £2,500 Energy Price Guarantee extension, a continued freeze on fuel duty saving drivers around £100 annually, and a 9.7% rise in the National Living Wage last month. The government’s cost-of-living measures aim to ease pressures on lower-income workers and cut inflation.
