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New legislation seeks to ensure restaurant owners give their employees all tips from customers

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New legislation is expected to be implemented to ban restaurants from keeping tips from their employees. The intention is restaurant owners will not be able to make deductions from tips which are paid by card in order to fund administration costs.

It is reported that High Street chains regularly take up to 10% of tips paid by credit or debit cards from employees. The issue was initially addressed two years ago in an official review led by the then business secretary, Sajid Javid, although nothing concrete had materialised.

The government is now re-addressing the issue, announcing that UK legislation will not only ensure workers get the tips they deserve, but will also give customers reassurance that the tips they leave are for the service they receive.

The announcement of new legislation is a timely reminder to employers of the protections that employees are entitled to during the course of their employment. Employers should adopt a proactive approach and re-evaluate their tipping procedure in order to avoid non-compliance and reputational risks.