UK Workers Must Keep All Customer Tips Under New Law

Workers are now entitled to receive all tips from customers under a new law that bans firms from withholding these payments—whether in cash or by card.

The aim of the law is "transparency and fairness" regarding how tips are distributed.

More than three million service workers in England, Scotland, and Wales are expected to benefit from the law, which comes into force on Tuesday, Mitchell Labiak and Andrew Turner reported for BBC News.

If companies break the law and retain tips, staff will be able to bring claims to an employment tribunal.

The law applies across industries but is expected to benefit workers in restaurants, cafes, bars, pubs, hair salons, and taxi services the most. Under the new law, all tips must be passed to employees by the end of the month following their receipt.

Tom Moyes, a partner at Blacks Solicitors, says the aim of the law is "transparency and fairness" regarding how tips are distributed.

Staff can now request a breakdown of how tips are being distributed every three months.

However, Moyes noted that the question of "fairness" is not entirely clear-cut. "Is there an argument that more senior people should be entitled to a greater share of tips, or is the reverse true? There isn't any guidance on that," he said.

Meanwhile, the law has not been introduced in Northern Ireland, which the UK union Unite called "completely unacceptable."