Ministers shelve plans for a new law allowing up to two million workers to keep ALL their tips and stop them being pocketed by employers instead – six years after first promising to end the practice
Ministers have quietly dropped plans for a new law forcing bosses to let staff keep all of their tips from customers.
New plans were announced in September that would make it illegal for businesses to siphon off gratuity money given to workers by customers using debit and credit cards.
At the time it was said the move could benefit approximately two million hospitality workers, who often rely on tips to help boost minimum wage salaries.
But sources confirmed today that a Government bill was now unlikely – though ministers could support a private members bill on the issue, if one is brought forward by an MP.
It comes six years after the idea was first raised by then business minister Sajid Javid.
Labour’s Angela Rayner said: ‘Another broken promise by Boris Johnson’s Conservatives – snuck out hoping you won’t notice.
‘He’s allowing tips to be pinched from under the noses of staff in bars, pubs, cafés and restaurants. You can’t trust the Tories with your rights at work.’
New plans were announced in September that would make it illegal for businesses to siphon off gratuity money given to workers by customers using debit and credit cards.
Last year, minister Paul Scully told the Times: ‘Unfortunately, some companies choose to withhold cash from hardworking staff who have been tipped by customers as a reward for good service.’ But today, Unite boss Sharon Graham toldthe FT : ‘Every year this government promises action to ensure fair tipping, and then does precisely nothing to deliver on that promise.’
Research has shown businesses that operate with an optional service charge for parties or gatherings often keep part of all of said charges instead of divvying them up among staff.
Under the plans mooted last year, front of house staff would be protected with the potential for employment tribunal and data requests over how their bosses were sharing tips.
Restaurant owners are already banned from keeping cash tips left for waiting staff, but there is nothing to stop them taking a cut when the bill is settled by debit or credit card, which has become increasingly popular as cash use was discouraged in the pandemic.
Union chiefs wrote to Business Secretary Kwasi Kwarteng last year, warning that the fall in cash payments and employers ‘interfering’ with tips has created a ‘perfect storm’ that has wiped out recent rises in the Living Wage and Minimum Wage.
At the time, Paul Scully, the Government’s labour markets minister, told the Times: ‘Unfortunately, some companies choose to withhold cash from hardworking staff who have been tipped by customers as a reward for good service.
‘Our plans will make this illegal and ensure tips will go to those who worked for it.
‘This will provide a boost to workers in pubs, cafes and restaurants across the country, while reassuring customers their money is going to those who deserve it.’
Trade union leaders reacted with fury today to the law being shelved today, with Unite boss Sharon Graham telling the FT: ‘Every year this government promises action to ensure fair tipping, and then does precisely nothing to deliver on that promise.’
Source: Read Full Article