The Employment (Allocation of Tips) Act 2023, also known as the Tips Bill, received Royal Assent last 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.
Selaine was proud to support the campaign, and knows how important this law is to her residents in North Devon 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. 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 since announcing its intention to legislate on this and confirming its support of this Private Members’ Bill.
As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees.
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.
Selaine Saxby, MP for North Devon said:
“I often feel that as MPs we do our best legislative work on Fridays, and it was a privilege to support workers to fairly receive their tips, which has now been ensured by the granting of Royal Assent to The Employment (Allocation of Tips) Act 2023.
“North Devon is home to many fantastic hospitality businesses, and the sector supports 11,100 local jobs. When it first came to light that some unscrupulous businesses were withholding all or part of workers’ tips. I, like many others, was horrified that workers were losing out. I am delighted that workers in our vital hospitality sector now have reassurance that they have the legal right to their tips.”
Dean Russell, Conservative MP for Watford said:
“I was really honoured to have support of so many colleagues from across the House of Commons and the House of Lords, including [MPs name] to make the Tips Bill a reality. Without the [MP name]’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 North Devon. 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.”
