I am thrilled the Tips Bill has received Royal Assent, benefitting thousands of hospitality workers in Mid Sussex.
The Employment (Allocation of Tips) Act 2023 is a major milestone in our legislative programme, not least because it will help to ensure that workers in the hospitality industry receive the tips and gratuities given by customers, rather than businesses retaining them. The legislation buttresses the rights of staff and will ensure they receive their fair share of tips and gratuities.
As many of you will know, I was proud to support the campaign to get this legislation through the Commons. Like many across the UK, I have always had reservations that some employers kept tips which were earnt by their staff. This new law will stop this immediately and will ensure that the tips are given to the individual staff member, or team. From today, customers will never have to ask again if workers will receive their tips because they will know for certain every pound will go to hard-working staff.
As people face rising living costs, it is not right to allow employers to withhold tips from their dedicated employees.
Whether you are making coffee or delivering a handmade cake, this new law ensures that staff receive fair pay for a fair day’s work. It also means that customers know that the staff member will receive the tip they leave.
Today’s Royal Assent follows a range of government action to support people with the cost of living and help those on lower incomes keep more of what they earn. Most notably, last month the National Living Wage increased by 9.7%, keeping the government on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024, provided economic conditions allow.
This overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors helping to ease cost of living pressures and give them peace of mind that they will keep their hard-earned money.