After campaigning for several years, Dean Russell's Tips Bill has received Royal Assent. The bill 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 will protect the rights of staff and will ensure that they receive their fair share of tips and gratuities.
As the proud MP for Watford, Dean has been speaking with local hospitality workers who are looking forward to the law coming in as this will ensure that tips and gratuities are passed on directly or shared amongst staff. The arrangements will be made by each individual business, as some teams like to share the tips amongst the front of office staff and the staff who work behind the scenes.
Dean Russell has been a driving force behind the Tips Bill, having proposed the legislation as a Private Members Bill.
When Dean served as a minister last year he became responsible for taking the bill through the committee stage whereupon his colleague Virginia Crosbie MP helped to ensure passage through the final stages in Parliament along with Lord Robathan completing the process in the Lords.
Business and Trade Minister Kevin Hollinrake said, “As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees.
Whether you are pulling pints or delivering a pizza, this new law will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.
I want to thank Dean Russell MP, Virginia Crosbie MP and all the campaigners who have helped make the Tipping Bill a reality and improved the lives of workers across the UK.”
Dean Russell, Conservative MP for Watford said:
“I am very pleased that my Tips Bill has received Royal Assent. Hard working people working in hospitality in Watford and across the country will be able to retain their tips, knowing that they will now have a fair deal.
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.
I would like to pass on my sincere thanks to every business and individual who has been in touch to share their support for my Bill".
Virginia Crosbie, Conservative MP for Ynys Môn, said “I am pleased this bill is now law. Driving it forward was all about fairness for workers and for those who give tips for good service. It was never right that a minority of companies could pocket tips when the public wanted them to go to the person who served them or made their food.
The law will now boost wages for what are often lower paid jobs and not boost company profits at the expense of hard-working staff. But it is also about valuing the people who do important jobs in our economy, especially in tourist areas like Anglesey, and I am proud to have played my part”.
Dean was a driving force for making this bill happen and it has been a pleasure working with him to achieve this important result for hospitality workers everywhere”.
UK Hospitality Chief Executive, Kate Nicholls, said:
“Fantastic hospitality experiences don’t happen without a huge effort from our teams, both front and back of house, and tips are a generous way of customers showing their gratitude, while providing a welcome boost to employees’ earnings. Tips are just one part of what makes working in hospitality a great job and career.
We’re pleased to support this new piece of legislation as it comes into law today and look forward to working with Government and other stakeholders on a code of practice that ensures a fair distribution of gratuities amongst all who contribute to providing great hospitality.”
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.
Further recent government action to support households with the cost of living includes extending the Energy Price Guarantee at its current level for another three months, which keeps energy bills at £2,500 for a typical household until the end of June. We have also extended the freeze on fuel duty, saving the average car driver in the UK £100 over the next year.
Notes to editors
The Government strongly believes that tips, gratuities and service charges should go to workers, rather than employers. Tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently. The Government has made this clear since announcing its intention to legislate on this and confirming its support of this Private Members’ Bill.
The measures in the Employment (Allocation of Tips) Act 2023 will come into force via secondary legislation. We expect the measures to come into force around a year after Royal Assent. We will confirm the date of commencement later this year.
The measures in the Act will be supported by a statutory Code of Practice. This Code is being developed and will be subject to formal consultation later this year.
Anyone who has concerns about current or recent employer can contact the Acas helpline on 0300 123 1100