Tips Bill could see operators lose power over service charge

By Georgi Gyton

- Last updated on GMT

Tips Bill could see operators lose power over service charge

Related tags: tipping, Government

A proposed Tips Bill could see restaurants and pubs lose the power to deduct money received by staff in tips should it be passed by Parliament.

The new bill, brought forward by Conservative MP Dean Russell, is being seen as a way of enshrining the rights of hospitality staff to receive all the money left to them in tips by customers, and to ensure fairness in the system.

Deductions made by operators would be forbidden under the new bill, with staff to either keep the money received by them directly or agreeing a pooling system with colleagues.

As reported by The Times​, Watford MP Russell said: “When we look at the role that many people have when working in bars or restaurants and so on, the tips are often seen as part of the salary in a way — rightly or wrongly.

“It’s always felt wrong to me that businesses can take the tips that have been given by the customer directly to that individual or to the staff for businesses to go, ‘Well, actually, that’s part of the payment for what they’re getting’."

The private member’s bill is due to be considered by parliament in September.

Dave Turnbull, Unite union national officer for hospitality, said: “This private member’s bill exposes the government’s failure to introduce the long-promised fair tips legislation.

“Not only must the government finally bring forward fair tips legislation, but it must ensure that it is sufficiently robust to prevent it being undermined through loopholes.”

Related topics: Business & Legislation

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