New tipping laws have come into force from October 1st, ensuring workers receive the tips that they earn.  

This new legislation will impact many students, with the cost-of-living crisis continuing to be a huge issue, and over half working alongside their studies. This will primarily benefit those working in the hospitality industry, but does extend across all industries.  

A tip or gratuity is payment from a customer as thanks for good service. Some businesses choose to add a service charge, which is a voluntary or compulsory amount added to a customer’s bill. The newly introduced law requires that employers pass all tips, gratuities, and service charges on to workers, without deductions. It also states these must be shared amongst employees in a fair and transparent way, as well as have a written policy about these tips and keep records of them. 

Previously, an employer was entitled to do with tips however they saw fit, and could retain some or all tips staff made and take deductions where they deemed appropriate. However, from today, if an employer breaks this law and retains tips, a worker is entitled to bring a claim to an employment tribunal – this is the judicial body that deals with workplace justice, primarily resolving disputes between workers and employees. 

A UEA student who worked as a waiter within a Norwich restaurant for over a year, told Concrete that “the restaurant would share cash tips evenly but retained those made via card payment.” They noticed “there are lots of businesses that have a gratuity option on their card machines but have been keeping tips, so the law will definitely be useful for those employed there.” Those tips can be easily tracked and owners will need to give them to workers.  

The student did however have concerns over smaller establishments, like the restaurant they previously worked at, with models of card machine that do not have a gratuity option when paying. Customers instead pay the amount that they want to tip combined with the amount on their bill, for example, on a bill for £51.45, they may ask to round it up to £55. Tips are much harder to track under this circumstance, and would be a lengthy process to prove by checking through all bills and receipts.  

Regardless, the new tipping laws are taking steps to protect workers and ensure they get the tips they earn, which will be a reassurance for many students and employees alike.  

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