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New law states hospitality workers will take home their tips

Employees in the hospitality sector will be legally entitled to 100 percent of tips they earn from next month.

Under the new Employment Act 2024 owners of restaurants, bars and cafes must pay their staff all of the gratuity earnt on shift applying to both card and cash payments.

Prior to this law, tip distribution was a decision made by business owners who could decide where the extra money went and how much of it staff received.

The Act states records of gratuity given as tips by customers or added service charges must be kept by the employer to ensure fair and full payments are made to workers.

This data can be accessed by employees to understand how their money is distributed.

The new law will cover full and part time workers as well as those on agency and zero-hour contracts.

Tips made from card and cash payments must be given to workers in the same months the customer paid them – photo credit: Lucy Jones

Guidelines also ensure staff members must receive gratuity payments within the same month the customer made the transaction.

Restaurant supervisor at The Ship Inn Herne Bay, Adelle Fearn commented in response to the new law: “Staff members do the hard work and tips are a little thank you for their effort.”

With many hospitality employees relying on tips provided by customers as a result of good service for a number of reasons including making up for cut hours or covering bills, the countrywide legislation is set to improve equality between staff and recognise hard work.

Adelle who has worked regular shifts up to 12 hours long stated: ” I think if the staff didn’t get their tips, especially after a long day is a slap in the face. If we earnt our wage then we deserve the tip too.

“The tips we receive from customers mean a lot not just financially, it’s the public’s way of acknowledging the service we have provided for them. To take tips away from staff and put them back into a business is an insult.

“Diners tend to only tip large amounts if they know it is  going directly to the staff who helped them with their visit, sometimes in my experience customers will give you cash on their way out to make sure you get to keep it.

“This law is good for everyone, businesses get to build an honest relationship with customers about where money goes and the staff who work hard get to keep the reward.”

If a tip does not reach an employee in its full amount or is distributed unequally without reason , workers can make a claim to a tribunal and receive up to £5000 in compensation.


featured image credit: Photo by Sam Dan Truong on Unsplash