Government upholds that millions of UK workers will be able take home “more of their hard-earned cash” under new legislation banning employers from withholding tips from their staff.

The move towards a cashless society has exacerbated the problem of companies keeping card tip payments for themselves, and the new measures, once in law, will ban that practice. The Employment (Allocation of Tips) Bill, which overhauls tipping practices, is set to benefit more than two million UK workers across the hospitality, leisure and services sectors.

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. On top of this, workers will receive a new right to request more information relating to an employer’s tipping record.

UK Hospitality Chief Executive, Kate Nicholls, said:  “Tips and service charges provide a significant and welcome boost to hospitality employees’ take-home cash … This should also reassure prospective hospitality sector workers at a time when the industry is seeking to fill vacancies.”