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Tags: HR in practice, tips for staff, wages
Categories: Employment Law, Pay & Reward
What do we already know?
We updated you in our previous Newsletters (here) that the Government planned to legislate to ensure that all tips are discretionary and should be paid to staff without deductions. The intention was to prevent the practice by some businesses of retaining all or part of discretionary service charges paid by card, instead of passing them on in full to staff.
So what’s new?
The Government is supporting a Private Members Bill (The Employment (Allocation of Tips) Bill) which reflects its previous intention to ensure that all tips, gratuities and service charges are distributed fairly and paid without deductions. The Bill had its third reading on 20 January 2023 and is expected to become law (either later this year or early next year).
The Bill includes:
A breach of the rules will enable workers to bring a claim in the Tribunal, which could result in the employer being required to revise the allocation to the worker and/or pay compensation
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