Around a year ago, plans were announced by the then Prime Minister to change the legal rules about tips (see here for details). Essentially the aim was to ensure that tips were actually passed on to the individuals, rather than being kept by the employer.
This week, in the Queen's Speech, that got one stage closer to fruition. The Employment (Allocation of Tips) Bill has been proposed which sets out how restaurants should hand over tips to staff and ensure that pooled tips are shared out fairly. Those in the hospitality sector will want to keep an eye out for further developments in this area.
What would the new rules change?At the moment, places like restaurants follow a voluntary code when it comes to tipping. But they don't have any legal obligation to pass on 100% of tips customers choose to give to workers. The plans for a new law, announced in the Queen's Speech, would force employers to pass them on. The government also wants businesses to be more open about how they divide up the money between their workers.