Tips law favours UK workers

Starting 1st October, hospitality workers in the UK will now legally receive 100% of tips, thanks to the new Employment (Allocation of Tips) Act. This legislation ensures all tips, whether paid by cash, card, or service charge, go directly to staff.

The law requires employers to allocate tips fairly and transparently, which means both front-of-house and back-of-house workers can receive a share. For example, a restaurant might divide tips proportionally based on hours worked or roles, ensuring everyone benefits.

If the law is breached, employees can take their case to a tribunal, potentially receiving compensation up to £5,000 per worker. This change impacts over four million hospitality workers, giving them greater control and security over their earnings.

The Act is a significant step forward in protecting worker rights and creating a fairer tipping culture across the British hospitality industry.