London Daily

Focus on the big picture.
Friday, Jul 31, 2026

New bill guaranteeing tips for hospitality workers moves closer to becoming law

New bill guaranteeing tips for hospitality workers moves closer to becoming law

The issue was first highlighted in 2015 when it was revealed some chains were adding service charges and using some of this money to top up managers' salaries.
A bill to ensure hospitality workers and others receive their tips in full has moved closer to becoming law after gaining cross-party support in the House of Commons.

Plans to legislate in this area have been delayed since 2015 when a government consultation found restaurant customers were overwhelmingly in favour of the tips they paid going to the people who served them.

Further research the same year found that many owners of restaurants, bars, and cafes add discretionary service charges to customers' bills but then keep some of the money themselves.

Under the Employment (Allocation of Tips) Bill, employers would have a legal obligation on employers to ensure all tips, gratuities and service charges are paid to workers in full.

Employees will be able to request tipping records and take employers to a tribunal if they feel tips have been withheld.

The long-delayed legislation would also enable the government to create a code of practice intended to ensure fairness and transparency in how the money is allocated among staff, and introduce an enforcement mechanism for employees to make complaints and seek redress.

In October 2018, then prime minister Theresa May announced plans to deal with tips but Brexit turmoil prevented the legislation from going ahead.

Similarly Boris Johnson, when he was in the top job, also looked to make the change when in October 2019 the Queen's Speech committed to bringing forward the Employment (Allocation of Tips) Bill.

Following the snap general election that year, the Queen's Speech incorporated the measures into a proposed Employment Bill - but it did not materialise in the last parliamentary session.

The Queen's Speech in May 2021 did not list an Employment Bill or a specific tips bill.

Law will 'create confidence for consumers'

Now, Tory MP Virginia Crosbie has sponsored the bill - and on Friday it cleared its final hurdle in the Commons and will progress to the House of Lords for further scrutiny.

Speaking during the bill's third reading on Friday, Ms Crosbie told MPs: "The tipping bill has a simple message: to promote fairness and to promote transparency, to ensure that workers receive the tips they earn.

"This will create a level playing field for businesses who are already passing on tips to workers in a fair and transparent way.

"It will create confidence for consumers, who will know that the full value of the tip that they give will go to the workers."

She added: "It is estimated that this bill will benefit around one million workers in the sector, with a financial benefit of around £200 each year.

"With the cost of living at the front of a lot of people's minds, this bill will help those workers who are wrongly not receiving the money that they are due from the tips that they have earned."

Business minister Kevin Hollinrake said the bill will protect workers from "bad bosses" and give them an avenue to seek remedies.

He said: "Businesses will be assured they are not being undercut by companies where bosses are keeping tips for themselves.

"Consumers will have increased confidence that their tips are going to the workers they are intended for."
Newsletter

Related Articles

0:00
0:00
Close
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
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
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
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Prince Harry Faces Significant Legal Costs After Insurance Shortfall
FirstGroup Sells Rail Software Business to Tracsis for £48 Million
Victoria and Albert Museum Staff Vote for Strike Action
Norwegian Teenager Convicted Over Contract Killing Plot in Britain
Royal Mail Raises Bulk Mailing Prices by 30%
Immigration Remains Britain's Top Public Concern, Ipsos Survey Finds
Prime Minister Says Social Care Reform Must Precede Assisted Dying Legislation
Ofgem Proposes Steep Grid Connection Charges for New Data Centers
Major Cyberattack Compromises UK Education and Police Data
Government Reviews Jurisdiction Over Crimes Involving US Military Personnel
England Declares Widespread Drought After Record Dry July
UK Commits £8.4 Billion to Dreadnought Nuclear Submarine Program
Zuckerberg Opposes US Ban on Chinese AI Models and Warns of Regulatory Capture
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
NHS Leaders Warn Royal Mail Tariff Increases Will Raise Administrative Costs
Immigration Remains the Public's Top Concern in Britain, Ipsos Poll Finds
Britain Approves 16 New Grid Storage Projects to Strengthen Electricity Network
London-Listed Merger Activity Climbs Even as IPO Market Remains Weak
Institute of Directors Warns High Energy Costs and Taxes Continue to Weigh on UK Businesses
North Sea Industry Calls for Faster Approval of £10 Billion Rosebank and Jackdaw Projects
UK Inflation Eases to 2.6% but Higher Energy Costs Could Renew Price Pressures
Burnham Holds Talks With Saudi and Qatari Leaders on Middle East Security and Energy
Burnham and Zelenskyy Announce UK Electronic Warfare Technology Cooperation During London Visit
Prime Minister Andy Burnham Launches Cross-Party Push for Social Care Reform in England
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
×