The government has announced a proposed new law requiring employers to pass all tips onto workers.
The announcement made by Paul Scully, Parliamentary under-secretary (Business, Energy and Industrial Strategy) reads:
Tips earned by workers should go to the workers they were intended for. We will bring forward legislation requiring employers to pass all tips to workers as soon as parliamentary time allows.
This legislation will require employers to pass on all tips, gratuities, and service charges to workers without any deductions. Employers will be required to distribute tips in a fair and transparent manner, where employers have control or significant influence over tip distribution.
We will introduce a new right for workers to make a request for information relating to an employer’s tipping record, to enable them to bring forward a credible claim to an employment tribunal.
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.