The law change is worth £200 million to hospitality and service workers
More than two million workers who receive tips for their hard work are set to keep more of their money, as the Tipping Act is set to come into force. The government says the legislation will ensure that consumers can be confident that any tip they leave will go to the worker, and not the business.
Hospitality workers and hairdressers often rely on tips to top-up their wages but in an age of contactless payments, it has become difficult for millions to know if they are getting the money left for them by grateful customers. From October 1, employers will have to tell workers their exact tipping practices and will be breaking the law if they keep any service charges for themselves.
"The secondary legislation laid today reinforces our commitment to legally protecting our low paid workers and ensuring a fair day’s pay for a fair day’s work."
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