London Daily

Focus on the big picture.
Wednesday, Jul 08, 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
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
UK Parliament Pushes for Greater Domestic Control Over Critical Technologies
UK Parliament Warns Trade Fair and Exhibition Industry Is Losing Global Competitiveness
Police Launch Murder Investigation After Mother and Two Children Found Dead Near Bedford
British Chambers of Commerce Survey Shows Business Confidence Falls to Post-Pandemic Low
UK Parliament Report Warns Britain Risks Falling Behind in Artificial Intelligence Sovereignty
Office for Budget Responsibility Warns United Kingdom Faces Long-Term Fiscal Pressures
Nigel Farage Resigns as Member of Parliament Amid Financial Scrutiny and Triggers By-Election
Deep Purple Has Released Its Best Album in Decades
UK MPs Criticise Student Loan System as Potentially Mis-Sold to Millions of Borrowers
Policy Groups Propose Bank of England-Backed Solar Loan Scheme for Millions of Homes
UK Health Agency Issues Amber Heat Alerts Across Six Regions as Temperatures Rise
Royal Air Force F-35 Jets Conduct First High North Air Policing Missions From Aircraft Carrier
Major UK Companies Join Government Cybersecurity Pledge Amid Rising Digital Threats
UK Sanctions Russian Operatives Linked to Chemical Weapons Programmes and Poisoning Cases
UK Government Expands Free Breakfast Clubs and Limits School Uniform Costs
UK Water Companies Face Tougher Penalties Under New Environmental Enforcement Rules
UK Universities Warn Funding Cuts Could Damage Skills Pipeline and Economic Growth
NHS Expands Artificial Intelligence Tools to Help Reduce Patient Waiting Lists
NHS Ombudsman Criticises Failures in End-of-Life Communication and Patient Care
NHS Launches Nationwide Vaccination Drive After Rise in Measles Cases
UK Government Introduces New Limits on Foreign-Linked Political Donations
Thames Water Creditors Advance £10 Billion Rescue Plan to Prevent Potential Public Ownership
Andy Burnham Prepares Labour Leadership Platform as Party Faces Post-Starmer Transition
UK Met Office Issues Heatwave Alerts for London and Southern England
Keir Starmer Blocks Earlier World Cup Kick-Off Time for England Match Against Mexico
NHS Digital Transformation and Media Consolidation Highlight UK Policy Priorities
UK Government Pushes Digital Trade Rules to Cut Export Costs for Businesses
Bank of England Plans Leverage Rule Changes to Support Government Bond Market
UK Police Operation Targets Organised Immigration Crime Networks With Hundreds of Arrests
Yvette Cooper Calls for Global AI Rules to Prevent Security Risks
NHS Begins Major AI Expansion Through £10 Billion Digital Investment Programme
UK Government Tightens Rules on Political Donations to Limit Foreign Influence
Keir Starmer Defends UK Defence Spending Plan at NATO Summit in Turkey
Comcast’s Sky Agrees £1.6 Billion Deal to Acquire ITV Media and Entertainment Division
Senior NHS Doctors Vote in Favour of Renewed Strike Action Over Pay Dispute
Andy Burnham Set to Succeed Keir Starmer as Labour Leadership Nominations Open
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Office for National Statistics Updates Historical Investment Data Review to Improve Accuracy
Department for Science, Innovation and Technology Highlights Economic Gains From Digital Inclusion
Debate Intensifies Over UK Defence Strategy and Domestic Security Priorities
×