Vale of Clwyd MP Dr James Davies has welcomed news that The Employment (Allocation of Tips) Act 2023, also known as the Tips Act, received Royal Assent this week.
The Act will ensure that workers in the hospitality industry always receive the tips, gratuities and service charges paid by customers. The legislation will make it illegal for businesses to withhold tips from around two million workers.
Given the large number of hospitality businesses across the Vale of Clwyd, James is looking forward to the benefits this will provide hundreds of employees in the area.
He said:
“This is an important law for people in the Vale of Clwyd who work in the hospitality sector, which will see them taking home more of their hard earned money.
“As people face rising living costs, it is not right for employers to withhold tips from their 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.”
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 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.”
Yesterday’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.