Under the Employment (Allocation of Tips) Act 2023 it will be unlawful for hospitality employers to withhold tips from employees, ensuring that staff receive the tips they have earned. The new law is expected to come into force in 2024 after a consultation and via secondary legislation.
The Government believes that tips, gratuities and service charges shouldn’t go to employers, but to workers as they are intended to reward staff for good service and hard work.
The revamp of tipping practices is set 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.
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