Workers should receive all tips from customers under a new law which bans firms from withholding the payments - whether in cash or by card.

More than three million service workers in England, Scotland, and Wales should benefit from the law which comes into force on Tuesday.

If companies break the law and retain tips, staff will be able to bring claims to an employment tribunal.

It applies across industries, but is expected to benefit those working in restaurants, cafes, bars, pubs, hairdressers, or as taxi drivers the most.

Under the new law, all tips must be passed to employees by the end of the following month from when they were received.

'It gives people a level of protection'

Tom William works in property development, but he used to work for a chain restaurant which took 3% of the value all the food and drink that serving staff sold off their salary - regardless of whether or not customers had tipped.

"I'm delighted about the new law because it gives people on the lowest forms of income and shiftwork a level of protection," he says.

"There's such high turnover in these professions. What happened in my experience was that they said: 'If you don't hand over your 3%, then we won't employ you anymore.'"

Bryan Simpson, hospitality organiser for the union Unite, also welcomed the move.

"These are the lowest paid workers in the British economy and they are going to benefit massively from this,” he told the BBC's Today programme.

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