Law to stop bosses keeping workers' tips edges closer after seven year delay

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Hospitality staff have missed out on hundreds of pounds a tips due to Tory dithering (Image: Getty Images/iStockphoto)
Hospitality staff have missed out on hundreds of pounds a tips due to Tory dithering (Image: Getty Images/iStockphoto)

Laws to make sure hospitality workers receive their tips in full have FINALLY edged closer after years of "disgraceful" delays.

It is estimated that front of house staff are missing out on a huge £200 million every year because greedy bosses are not compelled to hand the cash over.

Today a bill that would bring in a legal obligation for employers to make sure all tips are paid to staff in full cleared the House of Commons after more than seven years of Tory dithering.

If the Employment (Allocation of Tips) Bill does become law, companies could face punishment if they do not pass over tips.

The government launched a consultation back in 2015, when customers said they were overwhelmingly in favour of staff receiving money in full.

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Its failure to act has been branded "disgraceful" by Labour, which said workers have been "cheated out of their money" for years.

Law to stop bosses keeping workers' tips edges closer after seven year delayNew laws would force bosses to hand over cash (file image) (Getty Images)

Theresa May promised to introduce a change to staff tips “as soon as Parliamentary time allows” at Conservative Party Conference in September 2018.

Boris Johnson made a similar pledge, which also came to nothing, and it's taken a private members bill - which got cross-party support - for it to progress.

Tory MP Virginia Crosbie, the current sponsor of the Bill, told the Commons: "The tipping Bill has a simple message: to promote fairness and to promote transparency, to ensure that workers receive the tips they earn.

"This will create a level playing field for businesses who are already passing on tips to workers in a fair and transparent way.

"It will create confidence for consumers, who will know that the full value of the tip that they give will go to the workers."

The MP for Ynys Mon added: "It is estimated that this Bill will benefit around one million workers in the sector, with a financial benefit of around £200 each year.

Law to stop bosses keeping workers' tips edges closer after seven year delayTheresa May pledged to tackle the problem at the 2018 Tory conference (Getty)

"With the cost of living at the front of a lot of people's minds, this Bill will help those workers who are wrongly not receiving the money that they are due from the tips that they have earned."

She said "most businesses" are passing on tips to staff in full, but said: "We know that there are some unscrupulous employers who exploit staff by retaining some, or even all of the tips that the workers earn."

Business minister Kevin Hollinrake - who said he normally tips unless service is poor - said the Bill will protect workers from "bad bosses" and give them an avenue to seek remedies.

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He said: "Businesses will be assured they are not being undercut by companies where bosses are keeping tips for themselves.

"Consumers will have increased confidence that their tips are going to the workers they are intended for."

Conservative former minister Dean Russell, who initially brought forward the Bill, earlier said the idea has been "gestating" in government and society for "many years".

Last year Labour deputy leader Angela Rayner said: “It is disgraceful that time and again this Government has allowed hospitality workers to be cheated out of their own money, with staff losing up to £1 billion over the past five years of Tory inaction.

"Not content with crashing the economy, the Tories are showing they are the anti-worker party in every sense.

“Frontline workers in pubs, bars, cafes and restaurants are often the lowest paid, and with the Tories’ cost of living crisis worsening by the week, every penny counts."

Ben Hatton

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