As of October 1, 2024, new rules in the United Kingdom prohibit employers from keeping tips meant for their workers, an all-too-common practice in the industry. Under the new rules, 100% of the gratuities and service charges must be passed on to staff without deductions. IUF affiliate Unite the Union has led a long campaign demanding this change going back to the 2018 strikes at TGI Friday’s.
- According to the new UK law, tips can no longer be used towards the minimum wage, meaning that many low wage UK hospitality workers will receive a much-needed pay increase
- While Unite has welcomed the new legislation, the union has also expressed concern about the scope of the coverage as well as the government’s enforcement plans
- The UK Government has claimed that the changes will mean approximately 200 million GBP more for the 2 million tipped workers in the UK
- The new legislation applies in England, Scotland and Wales; however, in Northen Ireland, no legislation has yet been enacted, meaning that workers are not guaranteed to receive their tips
Bryan Simpson from Unite Hospitality stated, “Unite the Union has campaigned for this legislation for over a decade so we welcome its belated introduction as it will make a massive difference to millions of hospitality workers.”
