Making sure hospitality workers fairly receive tips, Dr Neil Hudson was proud to support the Employment (Allocation of Tips) Act 2023, which has now become law.
The legislation will protect the rights of staff from immoral employers, who were previously allowed to retain tips and gratuities.
With the tourism and hospitality sector representing a significant portion of Penrith and The Border’s GDP, Dr Hudson knows just how important this new law is to those who work hard to boost the local economy. As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees.
The Tips Bill was introduced as a Private Members Bill by Watford’s Dean Russell MP following several years campaigning for the change in law and taken through the final stages in Parliament and the Lords with Virginia Crosbie MP and Lord Robathan.
The Government backed the Tips Bill with agreement that tips, gratuities and service charges should go to workers, rather than employers. Tips are intended to reward staff for hard work and good service, and they should be distributed fairly and transparently. The Government made this clear since announcing its intention to legislate on this and confirming its support of this Private Members’ Bill.
Dr Neil Hudson, MP for Penrith and The Border, said:
“Whether you are baking treats or mixing cocktails, it is so important that your tips are protected, so I was beyond pleased the Employment Act attained Royal Assent. It also gives consumers peace of mind that their money is going where they intended.
“A huge thank you must go to Dean Russell MP and everyone else who helped better ensure fairness for hospitality workers in Penrith and The Border, and beyond.”
Dean Russell, Conservative MP for Watford said:
“I was really honoured to have support of so many colleagues from across the House of Commons and the House of Lords, including Dr Neil Hudson, to make the Tips Bill a reality.
“Without Dr Hudson’s support combined with Government backing and the work of Virginia Crosbie MP and Lord Robathan this bill would not have happened. Thanks to this teamwork, the lives of many people will be changed in my constituency in Watford and Penrith and The Border. Staff members will know that the tips they receive for working hard will be received by them, and not retained by the business.
“Like many across the UK, I have always had reservations that some employers kept tips which were earnt by their staff. This new law will stop this immediately and will ensure that the tips are given to the individual staff member, or team. When the Tips Bill comes into force, it will mean customers never have to ask again if workers will get their tips because they will know 100% will go to the staff.”
This Royal Assent follows a range of government action to support people with the cost of living and help those on lower incomes keep more of what they earn. Most notably, last month the National Living Wage increased by 9.7%, keeping the government on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024, provided economic conditions allow.
Further recent government action to support households with the cost of living includes extending the Energy Price Guarantee at its current level for another three months, which keeps energy bills at £2,500 for a typical household until the end of June. We have also extended the freeze on fuel duty, saving the average car driver in the UK £100 over the next year.
