As part of its ‘Industrial Strategy’ to curb worker exploitation, the government has announced plans to ensure that employees will receive the entirety of any tips left for them. There is an acknowledgement that many employers already act in good faith in this area, but some do not and it is those that the new plans target.
There will be new legislation soon, following on from the consultation on tipping practices that was begun in 2015. This will set in law what has until now been only a voluntary code of practice.
New rules will stipulate that tips must go to the workers providing the service. There will be a focus on increasing the clarity of billing to ensure that tips are genuinely given voluntarily, and steps will be taken to limit or prevent employers making any deductions from these payments other than for tax.
It remains to be seen how effective any new legislation will be, and particularly whether it will close every loophole used presently by employers to allocate tips to recipients other than those intended by the customer.
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