New legislation around tips in restaurants will come into force across the UK on Tuesday (October 1). Under these new rules, restaurants will be banned from withholding tips from staff, according to Sky News. The change will apply to the entire hospitality industry as well as any other businesses that allow tips.
"It means more than two million workers will be able to keep hold of an estimated £200m a year that is paid by customers in tips, gratuities and service charges," Sky News reported. Tipping rule changes begin tomorrow - what you need to know Follow our money blog for more 👇 https://t.co/LnTeMmpqvO — Sky News (@SkyNews) September 30, 2024 What does the new tipping law say? "Employers must pass on tips to workers without any deductions and a draft statutory code of practice sets out how tips should be distributed to demonstrate fairness and transparency," the news outlet continues.
"Employers should have a written policy on tips and record how they manage them. "Workers will have rights to request information about an employer's tipping record – this will allow them to bring credible claims to an Employment Tribunal. "Employers also can't alter someone's salary or hourly rate - and tips don't count towards the minimum wage.
"Tips must also now be paid within one month." Cash tips were already protected, however these new laws will now cover tips given via card payments. The new law was initially set to come into effect from July 2024, but was delayed, according.
