More than three million workers across restaurants, cafes, pubs, hairdressers and taxis should benefit from legislation which comes into force on Tues

Workers must keep all customer tips under new law

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2024-10-01 10:30:02

More than three million workers across restaurants, cafes, pubs, hairdressers and taxis should benefit from legislation which comes into force on Tuesday and means all tips - whether in cash or by card - must be shared between workers.

Nisha Katona, owner of Mowgli Street Foods, told the BBC the change was needed because "young people depend on the law to protect them" from employers who might avoid sharing tips with staff.

Under new Tips Code of Practice, all gratuities must be passed to employees by the end of the following month from when they were received.

"These are the lowest paid workers in the British economy and they are going to benefit massively from this,” he told the BBC's Today programme.

In 2021, the UK government said 80% of all tipping was taking place with a card, suggesting it had become easier for businesses to keep the money.

The Department for Business and Trade has predicted the new law will mean a further £200m will be received by workers rather than their employers.