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Tips (Payment by Employers etc) Bill - Third Reading of the entire bill
20 January 2023
Lead MP
Virginia Crosbie
Debate Type
Bill Debate
Tags
EmploymentStandards & Ethics
Other Contributors: 17
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.
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 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.
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.
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