Gratuities
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of introducing a ban on employer deductions for tipped workers.
Answered by Kate Dearden
The Employment (Allocation of Tips) Act 2023 ensures all tips, gratuities and service charges must be passed on to staff in full – except for permitted deductions like tax.
It is estimated this ban on employer deductions ensures workers receive around £200 million worth of tips each year that was previously retained by employers. A statutory code of practice was published to support employers on fair and transparent distribution of tips and ensure the requirements are followed.
This Government will go further, making it mandatory for employers to consult with workers at their place of business when developing their tipping policies.
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