The Tipping Act, set to take effect on October 1, will ensure that workers who receive tips, such as hospitality and hairdressing employees, keep more of their hard-earned money. The legislation prohibits employers from holding back tips and service charges and allows workers to take legal action against employers who violate this rule.
The government’s code of practice, published today, provides legal force to rules that will make tipping more transparent. Employers must now inform workers about their tipping practices and cannot keep any service charges for themselves.
Business and Trade Minister Kevin Hollinrake emphasized the importance of protecting tips for low-paid workers and ensuring fair compensation for their labor.
Ben Thomas, CEO of Tipjar, a company that helps employers distribute tips fairly, praised the Act as a measure that will support millions of tipped workers and level the playing field for businesses in these sectors.
