London Daily

Focus on the big picture.
Sunday, Aug 02, 2026

Keeping tips from workers could be illegal under new law

Keeping tips from workers could be illegal under new law

Employers not paying workers their tips in their entirety, without deductions, may soon become illegal.

A bill sponsored by the Conservative MP for Ynys Môn, Virginia Crosbie, would also introduce an obligation to allocate tips fairly among workers.

The UK government is backing the move and said it would benefit more than two million workers.

The trade union Unite said it would reserve judgement until "potential loopholes" in the bill were closed.

Kristian Cuffin, 30, who owns the Cuffed In Coffee cafe in Holyhead, in Ms Crosbie's constituency, said he could not imagine not already giving his staff the entirety of their tips.

"That's what they're intended for," he said.

Kristian Cuffin said all staff work equal hours and so tips at Cuffed In Coffee are divided equally.


All tips at Mr Cuffin's cafe are split evenly among staff each week, with electronic tips logged in a report at the end of each day.

"For us, I can imagine it's a lot easier because we all work fairly even hours. If somebody is working 40 hours and someone's only working five, then to distribute it evenly might not work.

"I suppose it depends on your business. But for us, it's quite a simple process," he added.

Ms Crosbie took over responsibility for the bill when Dean Russell, the backbench MP who introduced it, became a minister.

She acknowledged that most employers were already "doing the right thing," but said the bill would help "create a level playing field".

Under the law, employees would also be given the right to view their employer's tipping record.

"It means that when somebody is in a restaurant or they're in a beauty bar or a taxi, and they pay a tip on their credit card, that this tip will go to the person that actually served them or helped them," she said.

Virginia Crosbie says the bill will help "create a level playing field"


Currently, businesses who receive tips by card have the choice of whether to keep it or pass it on to workers. Cash tips, on the other hand, are legally the property of staff.

In 2021 the UK government said 80% of all tipping now happened by card and suggested this had made it easier for businesses to keep the funds.

Many of the jobs in the MP's constituency are in hospitality and tourism and she has been holding listening events with business owners and workers to help draw up a tipping code of conduct.

Rhys Taylor-Roberts, 20, who is one of six employees at Cuffed by Coffee, said he "100%" thinks the bill would be good news.

"It increases your wage, it gives you more motivation to have better customer service, it's appreciation that's being shown for your craft," he said.

Rhys Taylor-Roberts said tips act as a "top-up, a little help"


"A few pounds does make a difference, it pays for the little things so that you can save for the big things. Whether it's dinner or you're going to get a new haircut. It's like a top-up, a little help," he added.

Unite has previously said it was "not confident" the measures would address poor practices.

Its hospitality spokesman Dave Turnbull said it has now secured a commitment that "potential loopholes" would be closed.

He added that the union would reserve its judgement until these changes "see the light of day".

The UK government first announced plans to ensure all tips go to workers in 2018, but these were never passed into law.

A UK government official said: "The Employment (Allocation of Tips) Bill, backed by the government, will ensure that all tips go to staff by making it unlawful to hold back service charges from employees."

"More than two million UK workers will benefit, helping ease pressures caused by increases in the cost of living."

Newsletter

Related Articles

0:00
0:00
Close
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×