The Employment (Allocation of Tips) Act 2023 received Royal Assent on 2 May meaning tips will be protected for over two million workers.
As a result of the act coming into force the Government estimates £200m a year will go back into the pockets of hard-working staff. Front-of-house jobs in the hospitality sector are not generally well-paid so this is an additional boost on top of last month’s 9.7 per cent increase in the National Living Wage boosting it from £9.50 to £10.42.
The measures are expected to enter into force next year following a consultation on implementation and a new code of practice.
Commenting on this, Andrew Jones MP said:
When I receive great service in a restaurant or pub I want my tip to go to the people who have provided that service or prepared that meal – the workers in the venue where I am. It is that simple. We used to hear stories of tips being hoovered up by faceless organisations but that will become a thing of the past.
The value of the visitor economy in our district is estimated at around £600m. That is why here, in Harrogate and Knaresborough, where the hospitality industry is so significant and employment in the sector so high this new law is particularly welcome.
The legislation is supported by UK Hospitality who represent staff in the hospitality sector up and down the country.