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Employment (Allocation of Tips)
14 May 2024
Lead MP
Kevin Hollinrake
Debate Type
General Debate
Tags
EmploymentStandards & Ethics
Other Contributors: 12
At a Glance
Kevin Hollinrake raised concerns about employment (allocation of tips) in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The draft Code of Practice aims to provide clarity on the allocation and distribution of tips, gratuities, and service charges. It mandates that all qualifying tips must be passed on to workers, ensuring transparency and fairness across various sectors in England, Scotland, and Wales. The code includes provisions for maintaining written tipping policies, accurate records, and resolving conflicts through ACAS or employment tribunals.
Kevin Hollinrake
Con
Thirsk and Malton
The draft Code of Practice aims to provide clarity on the allocation and distribution of tips. It covers all qualifying tips, ensuring transparency in handling tips, maintaining fairness, and setting principles for employers. The code also includes provisions for written tipping policies and resolving conflicts through ACAS or employment tribunals.
James Grey
Con
not specified
Asked the Minister to clarify the definition of tips, gratuities, and service charges. Questioned whether the code applies to industries where tipping is rare and sought examples such as taxi drivers or restaurant waiters.
Justin Madders
Lab
Ellesmere Port and Bromborough
Thanks the Minister for his introduction and pays tribute to hon. Members who worked on the private Member's Bill leading to today's debate. Outlines that the code of practice is necessary to deliver provisions of the Employment (Allocation of Tips) Act 2023, which was promised seven years ago but delayed until October 2024. Mentions that in seven years, workers have missed out on an estimated £1 billion in lost tips. Supports the measures but highlights room for improvement regarding employer consultation and enforcement. Questions how the Government will work with businesses to ensure compliance and provide support, especially to SMEs. Discusses concerns over employment tribunal fees and insecure job conditions impacting workers' ability to enforce their rights under the Act. Suggests monitoring of the legislation's effectiveness and asks about the scope of digital tipping practices. Concludes by welcoming the implementation but stressing the need for further steps to ensure full delivery of good intentions.
Dean Russell
Con
Watford
Russell outlines his Bill's goal of ensuring that all tips, including those given via credit card, go directly to staff without deduction by employers. He argues the measure is fair for both workers and customers, as it clarifies tipping practices and eliminates anti-competitive business practices. The Bill will also require a code of practice to inform staff about tipping policies and includes agency workers. Russell acknowledges support from various organisations like UKHospitality and ACAS, as well as his parliamentary colleagues, in advancing the legislation.
Grey congratulates Russell on passing the Fair Tips Bill but questions whether restauranteurs should charge a fair price for service without relying on tips. He suggests that setting a correct wage ensures fairness and eliminates reliance on tipping systems.
David Linden
Lab
Glasgow East
Acknowledges the small but significant step forward in improving workers' rights with the private Member's Bill. Criticises the lack of substantial Government employment Bill and the absence of progress on improving employment law despite promises from Ministers. Expresses frustration over employers in hospitality and tourism sectors having fewer workers since Brexit. Highlights issues with tipping policy, including backroom staff eligibility for tips and equitable distribution. Raises concerns about the Conservative approach to workers' rights and warns Labour party not to retreat on its pledges for workers' rights. Emphasises that the legislation has potential to benefit up to 2 million workers across hospitality, leisure, and service sectors.
Virginia Crosbie
Con
Ynys Môn
Welcomes the code of practice as a step towards fairness and transparency. Highlights its significance for millions of people working in tourism sector, particularly those in her constituency. Estimates that workers will receive an average £200 per year more in their pockets, potentially generating around £900,000 annually for Ynys Môn workers. Emphasises the importance of tips and acknowledges local communities supporting various initiatives through fundraising events.
Kevin Hollinrake
Con
Thirsk and Malton
Addressed the debate on the draft code of practice for fair and transparent distribution of tips. Emphasised the government's engagement with hospitality organisations and commitment to supporting businesses while ensuring workers' rights are protected. Rejected criticism about Brexit undermining workers’ protections and highlighted several legislative improvements made by the Government.
David Linden
SNP
Glasgow East
Asked questions about whether the government would review the policy regularly, the legality of employment tribunals for unfair dismissal claims, and expressed concerns over the time taken to implement the legislation. Also questioned the Minister on workers’ rights improvements.
Dean Russell
Con
Watford
Supported the debate by highlighting the importance of fairness in tipping practices and acknowledged the government’s work with trade unions, ACAS, and hospitality sector organisations to ensure compliance with the upcoming code of practice.
James Grey
Con
North Wiltshire
Clarified a misunderstanding about his stance on giving tips, stating that he likes giving them but wishes employees were paid enough for tips to be unnecessary. Emphasised that the key point of the legislation is to ensure that tips are retained by the individuals who provided the service.
Virginia Crosbie
Con
Ynys Môn
Discussed the benefits of the code for her constituents, highlighting an expected benefit of £900,000 in her constituency and praised its positive impact on local establishments.
Government Response
The Minister responded that service charges are considered the same as tips when customers believe they cover tipping. He clarified that industries receiving tips only occasionally, such as Christmas boxes or rare gifts, do not need to follow certain provisions of the code.
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