Skip to content
Saturday 29 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,824.26
+0.29%
DAX
26,569.99
+0.77%
CAC 40
8,401.18
+0.98%
STOXX 50
6,485.67
+0.95%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Friday 24 September 2021 7:50 am  |  Updated:  Saturday 30 October 2021 9:41 pm

Restaurants banned from taking staff tips under new legislation

By: Emily Hawkins

Add as a preferred source on Google
London Creeps Back To Life With Easing Lockdown
Pub and restaurant staff will be entitled to all of their tips, under plans announced on Friday. (Photo by Hollie Adams/Getty Images)

Pub and restaurant workers will be entitled to all of their tips under fresh government plans, impacting 2m employees.

The government set out new legislation that would overhaul tipping practices on Friday, in a show of support for workers after their sector was hit hard by the pandemic.

Employers will be banned from withholding tips from workers. As it stands, bosses can currently choose to keep part or all of a discretionary service charge added to customers’ bills.

Chains to come under fire for keeping tips from waiting staff in recent years have included American diner chain TGI Fridays and Pizza Express.

The legislation will include a requirement for all employers to pass on tips to workers without any deductions.

What’s more, a statutory code of practice will set out how tips should be distributed to ensure fairness and transparency.

Workers will also be given the right to request information relating to an employer’s tipping record, helping them with employment tribunals.

Read more

Labour’s ‘chaotic’ zero-hour crackdown could cost firms £3bn per year

Andy Burnham, Mayor of Greater Manchester, in a suit and glasses, looking serious against a bright sky.

Labour markets minister Paul Scully said: “Unfortunately, some companies choose to withhold cash from hardworking staff who have been tipped by customers as a reward for good service.

“Our plans will make this illegal and ensure tips will go to those who worked for it. This will provide a boost to workers in pubs, cafes and restaurants across the country, while reassuring customers their money is going to those who deserve it.”

Many operators are hit with bank charges when customers tip by card, trade body UKHospitality said.

“With restaurants, pubs and other venues struggling to get back on their feet, facing mounting costs and accrued debts, we urge the Government to continue to work closely with the sector as it introduces this legislation to ensure this works for businesses and employees,” Kate Nicholls, UKHospitality CEO, added.

Unite the Union said a five-year delay in the government banning the practice – which was first promised in 2016 – had resulted in waiting staff losing an estimated £10,000 in lost tips.

A survey of Unite’s Pizza Express members found that waiting staff were losing £2,000-a-year in lost tips, or an estimated £10,000 since 2016.

Unite general secretary Sharon Graham welcomed news of the legislation but said it was “shocking” that the predominantly young workforce had been forced to wait for years.

Read more

Top court ‘opens the floodgates’ for part-time workers’ claims

Supreme Court building under clear sky, symbolizing justice and authority, relevant to recent judicial news coverage

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Jobs and Money

Categories

  • Business
  • Retail

Trending Articles

  • Pensioners to hand over bank statements in government benefits crackdown

  • Jamie Carragher: HMRC petitions for Sky Sports star to be declared bankrupt

  • Brewdog founder James Watt hits out at ‘total silence’ over new venture

  • Lloyds Bank and Halifax users unable to use app in latest outage

  • As it happened: FTSE 100 falls but Nasdaq soars after Nvidia sales boom

More from Morning Wire

  • Labour’s ‘chaotic’ zero-hour crackdown could cost firms £3bn per year

    Economics
    Andy Burnham, Mayor of Greater Manchester, in a suit and glasses, looking serious against a bright sky.
  • Top court ‘opens the floodgates’ for part-time workers’ claims

    Lawsuit
    Supreme Court building under clear sky, symbolizing justice and authority, relevant to recent judicial news coverage
  • Reform to slash HMRC officials’ pay if taxpayers wait too long

    Politics
    Robert Jenrick smiling at a podium with BRITISH WORKERS FIRST text, flanked by Union Jack flags at a press conference.
  • Top business group urges Healey to cut NICs to ‘solve Neets crisis’ 

    Economics
    Man in suit and red tie speaking at a podium to an audience in a modern building.
  • Neets dip below one million as Labour blamed for youth unemployment

    Economics
    Andy Burnham, Sadiq Khan, and Sainsburys staff discussing Neets numbers in a supermarket bakery aisle.
  • Jenrick pledges reform for small businesses

    Politics
    Robert Jenrick speaking at a podium with BRITISH WORKERS FIRST displayed, gesturing with his right hand.
  • Meta glasses court ban sparks privacy warning for City businesses

    Legal
    Mark Zuckerberg smiling while adjusting smart glasses on his face, wearing a black shirt and two wristbands
  • City leaders weigh employment policy alternatives to non-competes

    Law
    LONDON, ENGLAND - OCTOBER 15: Commuters cross London Bridge on October 15, 2024 in London, England. Estimates for the September 2024 payroll indicate that the number of employees rose by 0.4% compared with September 2023, a rise of 113,000 employees. (Photo by Dan Kitwood/Getty Images)
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook