A change in UK employment law now ensures that workers across restaurants, cafes, pubs, hairdressers, taxis, and similar industries will keep 100% of their tips. Coming into effect this week, the new law bans businesses from withholding gratuities, whether in cash or paid by card. This law could benefit over three million workers, with the government predicting an additional £200 million will now be received directly by employees.

What’s Changed?

Before the new legislation, it was common for some businesses to retain a portion of workers’ tips, especially when customers paid by card. In fact, by 2021, around 80% of tipping took place via card, making it easier for businesses to withhold the funds. Now, companies are required to pass on 100% of tips to their staff, ensuring that employees are fairly compensated for their work.

Who Benefits?

This law covers a wide range of industries where tipping is common, such as hospitality, personal care, and transportation. Whether you’re a waiter, a hairdresser, or a taxi driver, your employer can no longer keep any part of your tips.

What Happens If Employers Don’t Comply?

If businesses fail to comply with the new legislation, employees have the right to bring a claim to an employment tribunal. This empowers workers to stand up for their rights and ensures that their hard-earned tips are not being unfairly withheld.

Need Help With Employment Issues?

If you’re facing issues with your employer regarding tips or other employment matters, Austen Jones Solicitors is here to help. Our team of experts can offer you personalised advice and guide you through any disputes to ensure your rights are protected. Contact us today for a personal approach to your legal matters.