New UK law ensures workers are given the right to take home tips

Friday, May 5, 2023

The new tipping law means about £200 million will end up in the pockets of catering staff each year

Millions of hospitality workers could now take them home more money from work, after a new law that prohibited employees from withholding tips won royal approval.

The Allocation of Tips Act, 2023, drew royal approval last week and makes it unlawful for companies to withhold service charge for their workers.

A government survey that year found that clients were overwhelmingly in favour of the tips they paid staff.

Employees will also be entitled to demand more information about their employer's tip sheet, which will help them make a credible claim to an employment tribunal.

The government will confirm the precise date of the measures entering into force early this year, after consultations and legislation on secondary legislation.

The change, expected to come into effect in 2024, will see employees pocket about £200 million each year.