It’s a cultural import from the States that’s becoming more and more prevalent in the UK: tipping.
Everything from sitting down in a restaurant to taking a taxi or ordering a pizza is slowly becoming more and more demanding around tips and tipping as well as the dreaded ‘optional service charges’ that are automatically slapped on your bill.
Sometimes there’s even a service charge AND a gratuity fee, both slapped on separately, often adding up to more than 25 percent of the total bill.
And now there’s been a change to tipping law in 2024 that could see you landed with a £5,000 fine if you get it wrong.
The Tipping Act comes into force this October 1.
The new law change is aimed at making tipping and tips fairer for service workers, waiters, waitresses, and the likes.
It means that tips must now be handed directly to staff – and the same goes for tips by any other name, so service charges, gratuities, you name it.
Employers will also be mandated by law to publish a policy outlining how tips are allocated, whether by cash or card.
Employers must maintain records on how tips are distributed and workers will have the right to access them.
Employees will also be able to take their employers to a tribunal to claim up to £5,000 in compensation for not being given their tips.
Don’t worry though – you won’t be fined for tipping someone incorrectly. However, you will be able to check any restaurant’s tipping policy before asking for that ‘optional service charge’ to be removed.
The government said about the new law: “The Act and secondary legislation make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all of the tips they have earned. The measures are expected to come into force on 1st October 2024, once they have been approved by Parliament.
“Alongside the updated Code of Practice, we have also published the formal Government response to the public consultation which sets out the feedback received during the consultation, the Government’s response and next steps.
“Many hospitality workers rely on tips to top up their pay and are often left powerless if businesses don’t pass on service charges from customers to their staff.
“This overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors helping to ease cost of living pressures and give them peace of mind that they will keep their hard-earned money.”
CEO of Tipjar, Ben Thomas said: “Hospitality and service industries are part of the fabric of our culture and a cornerstone of our economy.
“We are honoured to have consulted with the Department of Business and Trade as they have developed this important Code of Practice clarifying employers’ responsibilities as they pass tips to their hard-working teams.
“As a business that exists to help employers distribute tips on the same principles of fairness and transparency, we are confident that this Act will support millions of tipped workers across the UK, and level the playing field for businesses across these sectors. We’re excited to support employers in leveraging the opportunities this will present, as we build a more fair and transparent future.”
