Money Wellness
Image of a woman carrying a tray of drinks. Millions of workers to get pay boost from changes to tipping legislation
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calendar icon23 Apr 2024

Millions of workers are set to take home more in their pay packet

Millions of UK workers are set to take home an estimated £200 million more after government legislation on tipping moved a step closer to coming into force.

The new Code of Practice will become part of the Employment (Allocation of Tips) Act 2023 and will make it unlawful for businesses to withhold tips from employees, meaning staff will receive all the tips they have earned.

As it will be set in law, employees can also use non-payment of tips as evidence in future employment tribunals.

Many hospitality workers in sectors, such as restaurants, bars, and cafes, are most likely to receive the pay boost and the security that they can seek legal support if their tips aren’t passed on.

Several major operators have been named and shamed over the years for not passing tips onto staff or using them to make up low pay.

The change is set to come into force on 1 October.

Business and Trade Minister Kevin Hollinrake, said: “It is not right for employers to withhold tips from their hard-working employees.

“Whether you are cutting hair or pulling a pint this government's legislation will protect the tips of workers and give consumers confidence that when they leave a tip, it goes to the hardworking members of staff.”

Avatar of Caroline Chell

Caroline Chell

Caroline has worked in financial communications for more than 10 years, writing content on subjects such as pensions, mortgages, loans and credit cards, as well as stockbroking and investment advice.

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