Dr Neil Hudson MP has supported the passing of the Employment (Allocation of Tips) Bill through the House of Commons which will ensure millions of UK workers will be able to take home more of their hard-earned cash by preventing employers from withholding tips from their staff.
Despite most hospitality workers – many of whom are earning the National Minimum Wage - relying on tips, there are still many businesses who fail to pass on service charges from customers to staff. Dr Hudson is clear this must change.
The tourism and hospitality sector is one of the major industries in Dr Hudson's Penrith and The Border constituency which includes visitor hot spots such as the Lake District, North Pennines, and Yorkshire Dales. With staffing shortages plaguing the industry, it is hoped the Tips Bill will make hospitality jobs more attractive to workers.
The Tips Bill, first introduced by Watford Conservative MP Dean Russell and sponsored by Ynys Môn Conservative MP Virginia Crosbie, was voted through the House of Commons recently and will now move through the stages of the House of Lords before passing into law. Having previously received support from the Minister for Small Business, Paul Scully MP, the successful vote is a step closer to ensuring workers receive 100% of the tips that are given in good faith by customers.
Dr Neil Hudson, MP for Penrith and The Border said:
"I'm proud to have supported this important piece of legislation which will stamp out unscrupulous tipping practices and make sure millions of people can keep their well-deserved tips across the UK.
"The tourism and hospitality sector is pivotal to our economy here in Cumbria but unfortunately we have seen staff shortages damage trading all too often. I hope this Bill will go some way to making the industry more appealing to workers, to boost employment levels and drive local growth. "
Through the Bill, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. In addition, workers will receive a new right to request more information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal. Agreements can also be met to divide the tips fairly to ensure staff working behind the scenes are included, as kitchen and cleaning staff for example, can often go unrecognised.
As we move towards a cashless society, the overhaul of tipping practices will ensure all well-deserved tips go to staff by making it illegal for businesses to hold back service charges from their employees.
