Introduced through a Private Members’ Bill last year, the Employment (Allocation of Tips) Act and the statutory Code of Practice on fair and transparent distribution of tips came into force today.
Millions of workers across the UK will now be able to keep 100% of their tips, gratuities, and service charges following the introduction of the Employment (Allocation of Tips) Act, a policy planned, passed, and orchestrated by the Conservatives when they were in government.
The new law, which comes into effect today, marks a significant shift in employment rights, ensuring that businesses must pass all tips directly to the workers who earn them.
The Conservative government’s initiative is expected to boost workers’ pay by a staggering £200 million annually. The legislation targets a minority of businesses that have been retaining portions of tips or service charges, ensuring that employees in industries like hospitality, leisure, and services receive their fair share.
Under this new legislation, employers are now legally required to distribute 100% of tips without deductions. The statutory Code of Practice, introduced alongside the law, aims to create transparency in how tips are handled, offering guidance to businesses on the fair allocation of tips among staff. Crucially, the law grants employees the right to bring claims to an employment tribunal if their employer withholds their tips.
Many in the business sector have expressed their support for the new framework. Andrew Tighe, Director of Strategy and Policy at the British Beer and Pub Association (BBPA), praised the Conservative Party’s approach, saying, “This new framework will introduce a level playing field for all businesses, ensuring that those who were not already passing on all tips to their staff will now be required to.”
The law has been designed with flexibility in mind, allowing businesses to maintain existing tipping models as long as they comply with the new standards. Employers failing to comply risk fines, penalties, and even compensation claims from affected workers.
Ben Thomas, CEO of TiPJAR, a digital tipping platform, welcomed the reforms, noting that they would instil greater confidence among employees in the hospitality and service sectors. “For the first time, these millions of workers can trust that tips employers collect on their behalf will always be passed to them.”
This tipping law represents yet another major reform championed by the Conservative Party, which built a legacy of policies designed to create fairer working conditions.
The Employment (Allocation of Tips) Bill 2022-23 was originally sponsored by Conservative MP Dean Russell who came eighth in the Private Members’ Bill ballot for the 2022-23 session. The Bill’s sponsor was Conservative MP Virginia Crosbie.
The Bill had its first reading on 15 June 2022 and passed second reading on 15 July 2022. The Bill completed its committee stage on 12 October 2022 without amendment.
The explanatory notes for the Bill (PDF) were drafted by the Department for Business, Energy and Industrial Strategy.
As the law takes effect across England, Scotland, and Wales today, workers can now enjoy the peace of mind that they will no longer have to fear losing hard-earned tips to unscrupulous employers. This is a clear Conservative victory for workers’ rights, reinforcing the party’s vision of a fair, prosperous, and modern Britain.
Credit: Conservative Post