Commons Sense

House of Commons · Bill Debate

Tips (Payment by Employers etc) Bill - Third Reading of the entire bill

20 January 2023 · 17 other contributors

Opened by Virginia Crosbie Con Ynys Môn

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Virginia Crosbie raised concerns about tips (payment by employers etc) bill - third reading of the entire bill in the House of Commons. Other MPs contributed to the debate.

Key points

  • The Bill aims to ensure workers receive all tips they earn, promoting fairness and transparency in the hospitality industry.
  • It benefits around one million workers with an estimated financial boost of 200 per year.
  • The legislation prohibits employers from retaining tips except for lawful deductions and outlines a statutory code of practice for fair tipping.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Virginia Crosbie Con Ynys Môn

The Bill aims to ensure that workers receive all the tips they earn, promoting fairness and transparency in the hospitality industry. It will create a level playing field for businesses that fairly distribute tips, benefitting approximately one million workers with an estimated financial boost of £200 per year. The legislation addresses unscrupulous practices where employers retain tips, providing legal protection for workers by prohibiting deductions except those required by law. A statutory code of practice will guide fair tipping practices and enable employment tribunals to enforce compliance.

Other contributors (17)
  • Virginia Crosbie Con Ynys Môn

    She supports the Bill, emphasising its importance in ensuring that workers receive all their earned tips. She mentions the financial benefit to workers and the support from various stakeholders such as UKHospitality and unions.

  • David Johnston not specified not specified

    He agrees that customers expect 100% of tips to go to staff, and workers should assume they will receive their tips as a supplement to their wages.

  • Mary Robinson not specified not specified

    She supports increased awareness about the Bill's benefits for workers and suggests a media campaign to inform both customers and workers about tip retention practices.

  • Matt Rodda Lab Reading Central

    He commends Virginia Crosbie for her work on the Bill, highlighting its importance in ensuring that workers receive their earned tips. He notes that the average benefit to workers is £200 a year and emphasises the significance of this legislation in towns with large hospitality industries.

  • Dean Russell Con Watford

    Mr. Russell highlighted the Bill's role in providing certainty for workers, ensuring that tips are passed on directly to them without any chance of misappropriation. He noted the importance of fairness and transparency in tipping practices, citing examples from his constituency where businesses rely on customer gratuities and worker satisfaction. Additionally, he argued that this measure would create a level playing field by discouraging bad practices that exploit workers.

  • Mary Robinson supports the Bill, noting that it addresses concerns about fair distribution of tips in the hospitality and beauty industries. She highlights that many constituents reported having up to 15% of their tips removed from pay packets without awareness. The Bill aims to ensure transparency and fairness by amending the Employment Rights Act 1996 to legally mandate full distribution of tips, gratuities, and service charges without deductions. Robinson emphasises the importance of customers being confident that their tips reach those who provided excellent service.

  • David Johnston Lab Dunfermline and West Fife

    David Johnston expressed surprise at tips not being passed on to staff, arguing that such practices undermine hard work and can be particularly detrimental during peak periods like Christmas. He emphasised the importance of hospitality workers receiving all their tips as it boosts their income significantly. Johnston cited his constituency's large number of pubs and its impact on younger and ethnic minority workers. He also drew parallels with unpaid internships, highlighting the need for social unacceptability to encourage employers to change practices before legislation takes effect.

  • Selaine Saxby Con North Devon

    I am disappointed by reports of companies keeping tips or portions of tips for themselves instead of passing them on to their staff. The hospitality sector is key in enabling residents of North Devon to benefit financially from our visitors, protecting our natural environment and ensuring that North Devon remains a world-class destination. Reliable staffing is key to a successful hospitality business. Tips are there to thank staff for their top-quality service; it is important that conscientious waiters, bartenders and chefs, and everyone who works to put delicious food and drinks in front of us, are recognised.

  • Paul Howell Lab Sedgefield

    Mr. Howell supports the Bill, highlighting its importance in ensuring fair payment for workers. He notes that customers expect tips to go to staff and emphasises the need for clarity in how tips are handled by businesses. He mentions the impact of the hospitality sector being hit hard due to COVID-19 and labour shortages, stating the Bill will provide a clear framework to address these issues. Mr. Howell also discusses the potential benefits for up to 1 million people who could receive an additional £200 annually from tips.

  • Simon Baynes Con Clwyd South

    Supports the Bill, emphasising its importance for young people entering the hospitality industry. Highlights that tips currently belong to employers and underscores the need for a fair distribution code of practice.

  • James Grundy Con Workington

    Endorses the Bill, noting the distinction between voluntary tips and mandatory service charges. Argues that tips are tokens of thanks rather than a means to cover wages.

  • Richard Fuller Con North Bedfordshire

    Questioned why it has taken so long for the Bill to progress, mentioned legal ownership issues of tips and gratuities, raised concerns about employment tribunals' pressure under this legislation, pointed out an uneven cost distribution towards smaller businesses. Also inquired into the Minister's personal tipping habits.

  • Fleur Anderson Lab Putney

    Congratulated MPs for their work on the Bill, emphasised the righting of decades-old injustices in the hospitality industry, raised concerns over employers making deductions from staff tips and lack of transparency, questioned the Government's commitment to workers' rights, and proposed measures Labour would implement if elected.

  • Kevin Hollinrake Con Thirsk and Malton

    Supports the Bill, citing its importance for fairness and transparency. Mentions benefits to around 1 million people and a £200 million annual impact. He also addresses concerns raised by other MPs, clarifies that tips should be about driving up service quality, not topping up salaries, and explains the burden on businesses in terms of record keeping.

  • Nigel Evans Lab Crewe and Nantwich

    Humorously comments on seeing the Minister's tipping style in action during a dinner invitation, highlighting an interest in observing how the Bill's principles would be applied.

  • Expressed gratitude for all contributions, highlighted work of hon. Members including Dean Russell's kind words and campaign to raise awareness about measures amending Employment Rights Act 1996. Emphasised importance for university towns such as Reading, workers' rights, businesses looking after staff, impact assessments for small businesses, culture of tipping in the US, support from unions and UKHospitality. Called on Minister's continued support and highlighted Bill's significance in promoting fairness and transparency to ensure workers receive earned tips.

  • Congratulated Virginia Crosbie and Dean Russell for their work on the Employment Rights Act (Tips) Bill. No further position or arguments provided.

Get updates like this by email
▸ Assessment & feedback
Summary accuracy