Government backs new laws to ensure all workers receive their full tips

A bill for ensuring fair tips for all workers has reached final stages in parliament. The Bill is to introduce the unlawfulness for employers to withhold tips from workers that have earnt them.   This legislation will benefit over 2 million hospitality workers who the majority of are earning the National Minimum Wage.

What does this mean for Employers?

There will be a new statutory Code of Practice made to support businesses and workers with how tips should be distributed, this includes the Employer having a written policy in place on how they record and manage tips.

Under the potential new law, tips will have to be fairly allocated to workers at one workplace. This means they must not be shared equally with another restaurant belonging to the same employer.

Tips will be allocated to workers no later than the end of the month following the month that the tip was paid.

What does this mean for Workers?

For workers, they now have the right to request more information and request to see the Employers tipping record. This is to ensure the calculations are being completed fairly and if not, enabling workers to bring forward any credible claims to employment tribunal.

Employers will have to pay up to £5,000 for financial losses if they have acted unlawfully.


This legislation is looking to be brought into place around Autumn of 2023. In the meantime if you need any support on how to get prepared and manage this, contact us at The HR Experts.