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What is the new law for restaurants in the UK?

Ivan Pham
Ivan Pham
2025-10-20 13:45:34
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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.
Mia Post
Mia Post
2025-10-20 11:52:16
Count answers : 27
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A new law on tipping will come into force from 1st October 2024. The new law will cover employees in the following industries: Bar & restaurant staff. The law is designed to protect staff and ensure that they are paid 100% of any tips or gratuities they receive. This Act ensures that 100% of tips, gratuities and service charges paid by customers are allocated to the staff. Tips must be allocated in a fair and transparent way to all staff including agency staff. Employers of businesses must have a written Tipping Policy in place. Tips must be distributed within one month following the month in which they were received. Employers are not allowed to make any deductions from the tips. Under the new law, it will be illegal to withhold tips from staff.

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Boris Güneş
Boris Güneş
2025-10-20 11:50:54
Count answers : 29
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These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions. From today, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal. Most employers already pass on tips to the staff who earn them; however these laws will crack down on the minority of businesses who continue unacceptable tipping practices. The new framework will introduce a level playing field for all businesses, ensuring that those who were not already passing on all tips to their staff will now be required to. These new measures will apply to all sectors in England, Scotland and Wales.