Taxi firms, hairdressers and hotels, as well as restaurants, pubs and cafes, will be banned from withholding tips paid by customers – whether in cash or by card – and service charge payments from workers. The legislation is being introduced by the government on Tuesday, more than eight years after a ban was first proposed. The law is designed to boost the earnings of about 2 million waiting staff and other hospitality workers, and follows a series of exposés, many in the Guardian and the Observer, about companies deducting money intended for waiting and kitchen staff from customers’ card payments. Instead of passing on the service charge, chains including the luxury Ivy Collection have chosen to bump up workers’ hourly pay rate by a set amount, no matter how much is collected during their working hours. Many businesses have already adjusted their tips policy in the face of pressure from customers to ensure the service charge goes to the workers.