Hospitality Staff To Be Given All Tips Under New Rules
People working in hospitality jobs where it is customary to receive tips from members of the public will be able to keep the entirety of any money handed over to them, instead of having to share it with their employer, under new legislation.
Earlier this week, Prime Minister Theresa May spoke at the Conservative Party Conference, revealing restaurants and bars will no longer be able to keep tips given to staff by customers.
This will impact around two million people across England, Scotland and Wales, with the government attempting to remove the exploitation of staff that currently takes place in 150,000 hotels, pubs and restaurants around the UK.
According to iNews, May stated: “The unemployment rate under this government is now the lowest since the 1970s, but we want to ensure everyone is treated fairly in the workplace.”
She went on to say: “That’s why we will introduce tough new legislation to ensure that workers get to keep all of their tips, banning employers from making any deductions.”
The leader of the Conservative Party stated that this will eventually help to develop the British economy in a way that “works for everyone”.
Currently, customers tipping in Belgo, Bella Italia, Café Rouge, Giraffe, Prezzo and Strada are not only giving some money to the waiting staff, but to the restaurants themselves.
While most people believe their tip is a sign of gratitude towards the employees who have served them, these chains have been making deductions of ten per cent from the tip before it is given to staff.
Those who work in hospitality will be glad to hear these proposals are finally being given the go ahead, after they were first suggested by ministers in May 2016. However, since then, no formal plans were put into place for the legislation to be formalised.
Despite having taken a long time for ban to be put into place, the Trades Union Congress (TUC) commented that this move is a “victory for campaigning”.
General secretary of the TUC Frances O’Grady stated: “For too long managers have got away with stealing tips from staff.”
Noting that the changes are “long overdue”, she added: “These new rules must be introduced quickly so that restaurant workers get what they’re owed.”
At the moment, customers who tend to tip with cash can be confident that their money will be pocketed by the staff who has served them, as it is the property of the staff member.
Conversely, card tips or charges added to the bill go to the business itself, and it then makes the decision about how to distribute this money. The new legislation will try to crack down on bosses taking the cash entirely or not sharing out the tips fairly.
However, Unite The Union raised doubts about whether the government’s actions will make a huge difference to the current procedure.
Regional officer for Unite Dave Turnbull said: “There will be question marks as to whether it will deal with the myriad of scams some restaurants use to pilfer staff tips to boost their profits.”