Plans for a new law protecting tips was proposed in September 2021. Do comments by the Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), mean we are any closer to a new law being brought before Parliament?
Question - Are we any closer to a new law which – if passed – would give workers the right to receive their tips?
In a parliamentary question from Yasmin Qureshi Shadow Minister (International Development), Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London) was asked if reforms to tipping practices outlined in September 2021, would hit the statute books any time soon.
In his reply, Mr Scully said that the government will bring forward legislation requiring employers to pass all tips to workers “as soon as parliamentary time allows”.
We reported on proposals to introduce legislation protecting workers’ rights to receive tips back in October 2021. As reported, new legislation will make it unlawful for workers in the industry to be deprived of this additional income and workers will also have legal recourse to bring a tribunal claim against their employer if the legislation is not being respected and followed.
The rules proposed last year will:
Require all employers to distribute all tips to staff without any deductions whatsoever.
Introduce a Statutory Code of Practice which will set out how to ensure the fair and transparent allocation of tips.
Offer new rights for workers to have access to their employer’s tipping records to support any tribunal claims.
In practice, this will mean employers will therefore no longer be able to deduct money under the guise of processing fees for tips left by customers using credit or debit cards.
Fair and Transparent
As the move towards customers paying by credit card and adding service onto their bills increases, the need for openness and transparency when it comes to tips is indeed to be welcomed. However, the rules will not change anything overnight. Mr Scully added that “We expect new rules to commence no earlier than one year after legislation has passed, giving employers sufficient lead-in time to adjust their business practices.” For now, we await the legislation. As with all government plans, the devil is in the detail.
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