Withholding tips from staff becomes unlawful as the Tipping Bill achieves Royal Assent, with more than 2 million workers to have their tips protected.

• Withholding tips from staff becomes unlawful as Tipping Bill achieves Royal Assent.
• More than 2 million workers will have their tips protected and be able to view an employer’s tipping record.
• An estimated 200 million a year will go back into the pockets of hard-working staff by retaining tips that would have otherwise been deducted.

Millions of UK workers will take home an estimated 200 million more of their hard-earned cash, as employers are banned from withholding tips under the Employment (Allocation of Tips) Act 2023, which today (Tuesday 2 May) received Royal Assent.

Many hospitality workers rely on tips to top up their pay and are often left powerless if businesses don’t pass on service charges from customers to their staff.

This Bill makes it unlawful for businesses to hold back service charges from their employees, ensuring staff receive the tips they have earned. The measures are expected to come into force in 2024, following a consultation and secondary legislation.

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.

Business and Trade Minister Kevin Hollinrake said:

As people face rising living costs, it is not...

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