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Government reforms (1):  Top Tip for Staff

What do we already know?

We mentioned in our October 2018 Newsletter (Government Reforms (3): Top tips for staff) that the Government intended to introduce new legislation to ensure that tips left for workers would go to them in full.

What’s new?

In the Queen’s Speech on 14 October 2019, it was announced that the Government intends to introduce the Employment (Allocation of Tips) Bill.  This legislation would create legal obligations on employers to pass on all tips, gratuities and service charges without deductions, to their staff and to distribute tips in a fair and transparent manner. It would also introduce a requirement for employers to follow a statutory Code of Practice when distributing tips.

Obviously there is currently some doubt that the current Government or Parliament will last much longer, and so we wait to see whether this Bill will make it very far through the legislative process.  A general election would mean a new Queen’s Speech and all bills not fully passed by Parliament at that point would go back to square one or could even be abandoned.  Therefore there is no guarantee that this bill will become law, at least in the short term.

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