The Employment (Allocation of Tips) Bill, first introduced by Watford MP Dean Russell and sponsored by Ynys Môn MP Virginia Crosbie, was voted through the House of Commons on Friday 20th January 2023 in a step closer to passing the bill into law.
Despite most hospitality workers – many of whom are earning the National Minimum Wage -relying on tips, there are still many businesses who fail to pass on service charges from customers to staff.
The overhaul of tipping practices will ensure millions of UK workers will be able to take home more of their hard-earned cash by preventing employers from withholding tips from their staff.
Speaking after the successful vote Dean commented “It has been a long campaign and I am incredibly proud that we have reached this momentous milestone.
"The Tips Bill, which I have championed since being elected, will directly benefit the 2 million UK workers across hospitality, leisure and services sectors. I am very grateful to Virginia Crosbie MP for her supporting the passage of the Bill which will ensure a fair deal for millions of workers across the country, including thousands in Watford.
"As I said in the House of Commons, my hope is this will end the need for any customer to have to ask if staff will receive their tip, as they will know it is their legal right to do so.”
During her speech, Virginia Crosbie MP said, “I would like to thank the Member for Watford and his earlier work on this bill. He has been instrumental in bringing this important piece of legislation to the forefront. The bill would not be where it is today without his determination and his hard work.”
The responding Minister for Business, Kevin Hollinrake MP, said during his closing speech, “This bill is about fairness and transparency and about again our efforts to make society a fairer one… I would also obviously thank the previous sponsor of the bill, the member for Watford, for his work on such an important piece of legislation and… his amazing campaigning on it. It has been brilliant to hear the support in this House for these measures.”
Through the Bill, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. In addition, workers will receive a new right to request more information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal. Agreements can also be met to divide the tips fairly to ensure staff working behind the scenes are included, as kitchen and cleaning staff for example, can often go unrecognised.
Following the vote, the Bill will now pass through the remaining stages in the House of Lords before passing into law.
