UKH welcomes proposed tip legislation for hospitality businesses

UKHospitality (UKH) has made comment about the second reading of the Private Members’ Bill on tipping

The Bill would require employers to ensure that all tips, gratuities and service charges they receive or exercise control over must be paid to workers in full without deductions and by the end of the following month.

It would also introduce obligations to ensure the fairness of arrangements to distribute those tips among workers, either when distributed by the employer or via an independent tronc.

UKH Chief Executive, Kate Nicholls, said, “Tips and service charges provide a significant and welcome boost to hospitality employees’ take-home cash.

'So we’re delighted to see this proposed legislation recommend that employers can set a fair distribution policy for staff, meaning they all benefit. This should also reassure prospective hospitality sector workers at a time when the industry is seeking to fill vacancies.

Kate continued, “The Bill is certainly a good starting point, from which there are a few additional issues to address.

'These include the length of time necessary for businesses to adapt; the onerous levels of red tape required; the worrying need to disclose sensitive business information; and for tips to count towards earned income, thus helping those workers seeking mortgages. We look forward, therefore, to working on this legislation with Dean Russell MP and BEIS.”