New tipping legislation 'good for us all'
The act itself entails mandatory tips are to be passed down to all workers with no deductions. The regulatory framework indicated under the act, provides direction to employers and workers on the just and transparent distribution of tips, gratuities and service charges.
A key point outlined in the act is the fact workers are now able to enforce their rights through the employment tribunal system. This is also where judges have the responsibility to consider the conditions of the code.
While the legislation was due to come into effect earlier in the summer, it was delayed until October, which one trade body labelled "an appropriate step".
Previously, businesses were encouraged to prepare themselves ahead of the legislation coming into effect. UKHospitality public affairs director David Sheen said: “Businesses would be well advised to be ahead of the line on this.”
Imperative policy
He also addressed the fact the code was flexible and could cater to the needs of various businesses. He implied it was essential for workers to make their policies available for all members of staff and agency workers who would also need access to it.
Sheen stated it was imperative to have a tipping policy. He also advised operators to be “watertight” when applying the policy, as the hospitality sector would be “in the spotlight”. A webinar was also conducted by technology group, Access Hospitality, detailing the implications of the act and what it may look like for businesses going forward.
Fuller's people and talent director Dawn Browne said: “We have always distributed all tips to our teams, so while the new legislation won’t change much at Fuller’s fundamentally, I am pleased to see a fairer policy being rolled out across the wider hospitality sector.” He continued: “That can only be good news for us all.”
Operator of the Tollemache Arms in Harrington, Northamptonshire, Flo Pearce said: "I strongly believe as an employer that the new tipping legislation is going to have a very positive impact on all those working within the industry.”
She continued, “All workers have the right to receive their hard earned tips and we have always shown full transparency with our teams when it comes to tipping.” Pearce said she strongly believed the legislation would have a “positive impact” on consumers as well as staff due to the assurance their tip will go directly to staff that have earnt it.
The new act is also a legal requirement, and can be utilised as evidence at an employment tribunal. This also indicates it is unlawful for employers to withhold service charges from employees, with the sole aim of allowing staff to receive full access to tips earned.
Significant shift
The Night-Time Industries Association (NTIA) backed the law and called for industry support as the night-time economy faces new challenges.
CEO Michael Kill said: "The new tipping legislation coming into effect on 1 October marks a significant shift for the UK's hospitality and night-time economy. We welcome the move towards transparency and fairness, ensuring that staff rightfully receive the tips and service charges that are intended for them. This has been a long-standing issue, and we commend the Government for addressing practices that have disadvantaged many workers.
"Many businesses have been preparing for this shift by adopting a code of best practices, supported by unions. However, some restaurants and venues, already grappling with rising wages and inflation, may be forced to take significant steps to stay afloat.
"It is a challenging time for our sector, but this legislation is a necessary step forward in protecting the livelihoods of workers who rely on tips.
"We encourage businesses to continue exploring all options to ensure staff and customers benefit while maintaining the quality of service that our sector is known for. The NTIA will remain focused on supporting businesses and workers as we adapt to this new landscape, ensuring a fair and sustainable approach for all."
