Peter Gibson, MP for Darlington Welcomes Royal Assent of Tips Bill Benefitting Hospitality Workers in Darlington.
The Employment (Allocation of Tips) Act 2023, also known as the Tips Bill, has received Royal Assent this week. The bill will help to ensure that workers in the hospitality industry receive the tips and gratuities given by customers, rather than businesses retaining them. The legislation will protect the rights of staff and will ensure that they receive their fair share of tips and gratuities.
Peter Gibson MP was proud to support the campaign, and knows how important this law is to his residents in Darlington who work in the hospitality sector. The Tips Bill was introduced as a Private Members Bill Watford’s Dean Russell MP following several years campaigning for the change in law and taken through the final stages in Parliament and the Lords with Virginia Crosbie MP and Lord Robathan.
The Government backed the Tips Bill with agreement that tips, gratuities and service charges should go to workers, rather than employers. Tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently. The Government made this clear since announcing its intention to legislate on this and confirming its support of this Private Members’ Bill.
As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees.
Whether you are making coffee or delivering a handmade cake, this new law will ensure that staff receive fair pay for a fair day’s work. It also means that customers know that the staff member will receive the tip they leave.
Peter Gibson MP for Darlington said “I was pleased to back the Tips Bill which will ensure fairness for hospitality workers across Darlington.
Dean Russell, Conservative MP for Watford said:, “I was really honoured to have support of so many colleagues from across the House of Commons and the House of Lords, including [MPs name] to make the Tips Bill a reality. Without the [MP name]’s support combined with government backing and the work of Virginia Crosbie MP and Lord Robathan this bill would not have happened. Thanks to this team work ,the lives of many people will be changed in my constituency in Watford and [MPs constituency]. Staff members will know that the tips they receive for working hard will be received by them, and not retained by the business.
Like many across the UK, I have always had reservations that some employers kept tips which were earnt by their staff. This new law will stop this immediately and will ensure that the tips are given to the individual staff member, or team. When the Tips Bill comes into force, it will mean customers never have to ask again if workers will get their tips because they will know 100% will go to the staff.”
Business and Trade Minister Kevin Hollinrake said, “As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees.
Whether you are pulling pints or delivering a pizza, this new law will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.
I want to thank Dean Russell MP, Virginia Crosbie MP and all the campaigners who have helped make the Tipping Bill a reality and improved the lives of workers across the UK.”
Virginia Crosbie, Conservative MP for Ynys Môn, said “I am pleased this bill is now law. Driving it forward was all about fairness for workers and for those who give tips for good service. It was never right that a minority of companies could pocket tips when the public wanted them to go to the person who served them or made their food.
The law will now boost wages for what are often lower paid jobs and not boost company profits at the expense of hard-working staff. But it is also about valuing the people who do important jobs in our economy, especially in tourist areas like Anglesey, and I am proud to have played my part”.
Dean was a driving force for making this bill happen and it has been a pleasure working with him to achieve this important result for hospitality workers everywhere”.
UK Hospitality Chief Executive, Kate Nicholls, said:
“Fantastic hospitality experiences don’t happen without a huge effort from our teams, both front and back of house, and tips are a generous way of customers showing their gratitude, while providing a welcome boost to employees’ earnings. Tips are just one part of what makes working in hospitality a great job and career.
We’re pleased to support this new piece of legislation as it comes into law today and look forward to working with Government and other stakeholders on a code of practice that ensures a fair distribution of gratuities amongst all who contribute to providing great hospitality.”
Today’s Royal Assent follows a range of government action to support people with the cost of living and help those on lower incomes keep more of what they earn. Most notably, last month the National Living Wage increased by 9.7%, keeping the government on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024, provided economic conditions allow.
Further recent government action to support households with the cost of living includes extending the Energy Price Guarantee at its current level for another three months, which keeps energy bills at £2,500 for a typical household until the end of June. We have also extended the freeze on fuel duty, saving the average car driver in the UK £100 over the next year.