Legislation to be introduced prohibiting business owners from retaining staff tips

It is expected that Business Secretary Kwasi Kwarteng will announce plans this week regarding the introduction of stricter tipping laws. 

According to The Sun, workers will become ‘legally entitled to receive 100% of tips left to them.’ 

However, it is still unknown whether the legislation will prohibit credit card and banking administration charges being taken from tips, which can lead to a reduction in gratuities. 

Earlier this year, Dean Russell MP, put forward a private member’s bill to bar restaurants from keeping staff tips. Deductions made by operators would be forbidden under the bill, with staff to keep the tips intended for them, or else agree a pooling system with colleagues. 

Russell said in July that “it’s always felt wrong that businesses can take the tips that have been given by the customer directly to that individual or to the staff for businesses to go, ‘Well, actually, that’s part of the payment for what they’re getting.’” 

Nighttime Economy Adviser for Greater Manchester, Sacha Lord, welcomed the news via his Twitter account: “This is very much welcomed and something we’ve been campaigning hard for in Greater Manchester. A good step to encourage staff back to the sector.”