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Tips (Service Charges) Bill - Clause 1

15 July 2022

Lead MP

Dean Russell

Debate Type

Bill Debate

At a Glance

Dean Russell raised concerns about tips (service charges) bill - clause 1 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

Dean Russell

Opened the debate

Moves the Bill to debate, emphasising the importance of ensuring that tips given by customers are passed on fairly to hospitality workers. Argues that the Bill aims to create a legal obligation for employers to distribute all tips without deductions and proposes a code of practice to ensure fairness in tip distribution. Cites media reports highlighting an increase in unfair practices regarding credit card tips and stresses the need for transparency and fair treatment of workers amidst rising cost-of-living pressures.

Lyn Brown Lab

West Ham

Congratulates Dean Russell on bringing forward the Bill, supporting its aim to prevent exploitation by unscrupulous employers. Raises concerns about future-proofing the legislation to cover digital platform operators like Deliveroo.

Mary Robinson Lab

Croydon North

Supports the Bill, emphasising its importance for hospitality workers and customers alike. Highlights instances of up to 15% tip deductions by employers and underscores the need for public trust in fair tip distribution.

Christina Rees Lab

Neath

Congratulates Dean Russell on introducing the Bill, stresses the importance of fairness. Asks if he has reached out to Co-operative party for engagement and support.

Jill Mortimer Con

Halesowen and Rowley Regis

Speaks on behalf of backroom staff in hospitality, emphasising the importance of fair tip distribution to all workers, not just front-line employees.

Mark Jenkinson Con

Workington

Congratulates Dean Russell for bringing forward the Bill and expresses gratitude on behalf of hospitality industry workers in his constituency who will benefit from fair tip distribution practices.

Felicity Buchan Con

North East Fife

Supports the bill as it professionalises the hospitality sector, making employment practices fairer. Highlights that tips should be legally entitled to employees and not merely at the discretion of employers. Emphasises that this legislation is essential for attracting staff in central London constituencies where hospitality plays a significant role in the economy.

Wes Streeting Lab

Ilford North

Raises a point of order regarding health and social care services' preparedness for an upcoming heatwave, unrelated to the tipping practices bill.

Nigel Evans Con

Fylde

Responds to Wes Streeting's point of order regarding health and social care services' preparedness for an upcoming heatwave, unrelated to the tipping practices bill.

Darren Henry Con

Broxtowe

Welcomes the bill for creating a legal obligation on employers to allocate tips to workers without deductions. Acknowledges that many employers already do this, but legislation is necessary to create a level playing field and ensure fairness in competition for businesses.

Jill Mortimer Lab

Hartlepool

Supports the Bill, citing examples of hardworking employees in local restaurants and pubs who deserve their tips. She highlights that some businesses do not pass on gratuities to staff, leading customers to question where the money goes. Emphasises the importance of rewarding hard work and fostering a welcoming atmosphere which enhances community social fabric.

Edward Argar Con

Melton and Syston

Welcomes the Bill, noting it addresses a broader service industry beyond hospitality. Highlights lack of statutory protection for tips currently being the property of businesses without legal obligations to pass them on fairly. Advocates transparency and the importance of fairness both to consumers and staff, supporting the inclusion of a written policy and employment tribunal remedies.

Saqib Bhatti Con

Meriden and Solihull East

Saqib Bhatti supports the Bill, emphasising equity and fairness for hospitality workers. He noted that many businesses in his constituency have struggled during the pandemic and need support to address issues like staff shortages. A tipping system could encourage better treatment of employees, thereby helping with recruitment. He also raised concerns about service charges not benefiting workers and requested clarity on this from the Government.

Nigel Evans Con

Chorley

Welcomed the Minister to her new role. No further contribution or position on the bill was provided.

Jane Hunt Con

Loughborough

The Minister supports the Bill and highlights its importance for protecting workers' rights. She mentions that it will give new protections to millions of workers in hospitality, retail, and other sectors where tipping is common. The Government's position is based on evidence showing that voluntary guidance has not been sufficient to stamp out bad practices by employers withholding tips. Additionally, the Minister reiterates that the Bill does not change tax law but ensures tips are passed on to staff without deductions except those required by existing legislation.

Chris Stephens SNP

Glasgow North West

The SNP Member supports the Bill and asks the Minister to confirm that the Government will pursue rigorously employers who are still trying to make tips part of the national minimum wage, and that these companies should be named and shamed as is currently done.

Felicity Buchan Con

Kensington