Two million workers will take home more money as Tipping Act comes into force

More than two million workers who receive tips for their hard work are set to keep more of their money, as the Tipping Act is set to come into force. The government says the legislation will ensure that consumers can be confident that any tip they leave will go to the worker, and not the business.

The Act bans employers from holding back tips and service charges from the employees who earned them, while allowing workers to take their bosses to an employment tribunal if they do. The government published the legislation's code of practice today, giving legal force to rules that will make tipping more transparent.

Hospitality workers and hairdressers often rely on tips to top-up their wages but in an age of contactless payments, it has become difficult for millions to know if they are getting the money left for them by grateful customers. From October 1, employers will have to tell workers their exact tipping practices and will be breaking the law if they keep any service charges for themselves.

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Business and Trade Minister Kevin Hollinrake said: "It is not right for employers to withhold tips from their hard-working employees.

"Whether you are cutting hair or pulling a pint, this government’s legislation which will protect the tips of workers and give consumers confidence that when they leave a tip, it goes to the hardworking members of staff.

"The secondary legislation laid today reinforces our commitment to legally protecting our low paid workers and ensuring a fair day’s pay for a fair day’s work."

CEO of Tipjar, Ben Thomas said: "Hospitality and service industries are part of the fabric of our culture and a cornerstone of our