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Employment (Allocation of Tips) Bill - Sitting 1

12 October 2022

Proposing MP
Siobhain McDonagh Lab
Mitcham and Morden
Type
Public Bill Committee

At a Glance

Issue Summary

The statement discusses Clause 1 of the Employment (Allocation of Tips) Bill, which aims to ensure fair allocation of tips for workers in the hospitality sector. The statement discusses the Employment (Allocation of Tips) Bill, which aims to ensure that employers pass on tips received from customers to workers in full and fairly. The statement addresses the Employment (Allocation of Tips) Bill and its aim to protect workers' tips from being wrongly withheld by employers. The Employment (Allocation of Tips) Bill aims to prevent employers from making deductions when distributing tips, ensuring all money left by customers is passed to workers in full and fairly. The statement discusses the Employment (Allocation of Tips) Bill which aims to ensure that business owners cannot keep part or all of the tips given by customers to workers.

Action Requested

No specific action is proposed in this statement. The MP expresses support and appreciation for the Bill's sponsor and highlights its importance in benefiting millions of workers who rely on tips as part of their earnings.

Key Facts

  • The Employment (Allocation of Tips) Bill aims to ensure fairness.
  • It will benefit more than 2 million people across the UK, representing 7% of workers.
  • The Under-Secretary of State for Business, Energy and Industrial Strategy is thanked for his support.
  • The Employment (Allocation of Tips) Bill will benefit over 2 million workers in the UK.
  • It applies to all tips paid by a customer to an employer, including those paid by card.
  • Employers must allocate tips fairly among workers at the place where they were earned by the end of the month following payment.
  • The Secretary of State has powers to issue and revise a code of practice for promoting fairness in tip distribution.
  • Workers can bring complaints to an employment tribunal if their rights are breached.
  • Dean Russell recently became the responsible Minister for the Employment (Allocation of Tips) Bill.
  • The Bill aims to prevent businesses from wrongly pocketing or withholding tips intended for staff.
  • The Government originally explored this issue in 2015.
  • The Bill aims to protect over 2 million workers from bad bosses.
  • A statutory code of practice will be developed with key stakeholders through consultation before being brought to both Houses for approval.
  • Employers must have a written policy on tips and maintain records relating to them, enforceable by employment tribunals.
  • Tourism contributes around 12% of employment in Wales.
  • The Bill aims to prevent business owners from keeping tips intended for employees.
  • There are three Welsh MPs and two Yorkshire MPs on the Committee.
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