The Government has announced that a proposal to legislate on how tips, gratuities and service charges are to be distributed to workers without deduction will be put before Parliament as soon as time allows.
Currently employers who control or influence how the tips are distributed have been known to divert some of the tips towards their own costs such as heating and lighting.
If the new legislation is approved, employers will be required to distribute gratuities in a fair and transparent way if the employer either controls or has significant influence over tip distribution.
Part of the Government’s proposal will provide workers with the right to make a request for information from their employer regarding their tipping record. This information will enable the worker to put forward a claim to an employment tribunal.
Further details of the proposals which were published in September 2021 can be found here on Gov.uk.
Employers are no longer able, under NMW legislation, to use tips and gratuities to top up a workers pay to bring them up to the NMW.