UKHospitality: "tipping code offers right level of flexibility for businesses"

In its response to the consultation, UKHospitality says the code rightly enables businesses to reflect the circumstances in which they operate, without being too prescriptive and burdensome and offered them the right level of flexibility.

It says the vast majority of the sector will already be operating in the spirit of the new legislation, ensuring transparency and fairness to team members through existing tipping policies.

In December last year the Government published a draft code of practice ​​on the fair and transparent distribution of tips, which will come into effect on 1 July this year.

The new code will make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive the tips they have earned.

“Tips are a valued bonus for our staff and are an important way in which guests can show their gratitude for brilliant service, high-quality food or enjoyable experiences,” says UKHospitality chief executive Kate Nicholls.
“Instilling fairness and transparency around tipping processes has been a focus for the sector over a number of years and I have no doubt that the sector is overwhelmingly already operating in the spirit of the new legislation.”
The trade body says that a number of areas have been highlighted for improvement, in particular how agency workers are treated by the legislation. The current legislation requires businesses to include agency workers in tip distribution, but this could cause significant administrative difficulties and reduce tips for contracted workers, it says.
UKHospitality has released detailed guidance on the legislation for its members that takes businesses through the detail of the new rules to which they need adhere.