Workers across UK restaurants and eateries will benefit from new laws effective from Tuesday to ensure they keep 100 per cent of the money they have earned through tips.

Introduced through a Private Members’ Bill last year, the Employment (Allocation of Tips) Act and the statutory Code of Practice on Fair and Transparent Distribution of Tips requires employers to pass all tips, gratuities, and service charges on to workers, without deductions.

Starting this week, if an employer breaks the law and retains tips, a worker will be able to bring a claim against them through an employment tribunal.

“When you tip someone for good service, you expect them to keep all their tip. They did the work – they deserve the reward,” said UK Minister for Employment Rights Justin Madders.

“This is just the first step of many in protecting workers and placing them at the heart of our economy. We will be introducing further measures on tipping to ensure workers get their fair share of tips,” he said.

“Britain’s outdated employment laws require an urgent update. This government will ensure they are fit for the modern economy and deliver on our plan to 'Make Work Pay',” the minister added.

The UK’s Department for Business and Trade (DBT) estimates that the tipping law changes will mean around GBP 200 million will be received by workers that would otherwise have been retained by these employers.

Most employers already pass on tips to the staff who earn them, but the laws are designed to crack down on the "minority" of businesses who continue unacceptable tipping practices.

Employers in the wrong could be made to pay fines or compensation to staff, with workers able to hold bosses fully accountable through employment tribunals.

The DBT said it is hoped that this will build further trust between customers and businesses, as well as create a level playing field for all businesses through the fair and transparent distribution of tips across the board.

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