Team Blitz India
Millions of UK workers are set to take home an estimated £200 million more of their hard-earned cash, as landmark legislation on tipping took a step towards coming into force, according to a statement from the Department for Business and Trade.
The Government introduced the Code of Practice on the fair and transparent distribution of tips on Monday, April 22, that will have legal effect under the Employment (Allocation of Tips) Act 2023.
The updated Code of Practice will be statutory and have legal effect, meaning it can be introduced as evidence in an employment tribunal, the statement said.
The Act and secondary legislation make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all of the tips they have earned. The measures are expected to come into force on October 1, once they have been approved by Parliament.
“Alongside the updated Code of Practice, we have also published the formal Government response to the public consultation which sets out the feedback received during the consultation, the Government’s response and next steps,” it added.
Many hospitality workers rely on tips to top up their pay and are often left powerless if businesses don’t pass on service charges from customers to their staff.
This overhaul of tipping practices is expected to benefit more than 2 million UK workers across the hospitality, leisure and services sectors helping to ease cost of living pressures and give them peace of mind that they will keep their hard-earned money, the statement said further.
