Workers in England, Scotland, and Wales are now entitled to keep all customer tips, thanks to a new law effective today. Over three million service workers will benefit from this legislation.

The law prohibits companies from withholding tips, whether received in cash or by card. Employers must pass on all tips to employees by the end of the following month. Workers will still pay tax on their tips.

Breaking the law will enable staff to bring claims to an employment tribunal. The legislation applies across industries, with significant benefits for:

– Restaurant workers
– Cafe staff
– Bar and pub employees
– Hairdressers
– Taxi drivers

Tom William, a former restaurant worker, praises the law: “It gives people on the lowest forms of income and shift work a level of protection.”

Bryan Simpson, Unite’s hospitality organiser, notes: “These are the lowest paid workers in the British economy, and they will benefit massively.”

Nisha Katona, owner of Mowgli Street Foods, supports the law but warns of potential casualties among unprepared companies.

Tom Howes and Dory Czicza, coworkers at Fish’o’licious, discuss tip distribution. Dory, a waitress, receives tips, while Tom, a fryer, does not.

“The tips are for their service – it’s not for the business,” Tom says.

Emma Webb from The Kitchen in Ilminster, Somerset, says the new rules won’t change her business, as they already share tips fairly.

Tom Moyes, partner at Blacks Solicitors, explains the law’s aim: “transparency and fairness” in tip distribution. Staff can request a breakdown every three months.

However, questions surrounding fairness and tip distribution remain unclear.

The law has not been introduced in Northern Ireland, prompting Unite to label it “completely unacceptable.” The Northern Ireland executive is drafting a workers’ rights bill.

VisitLondon recommends:

– 10-15% tip when eating out
– 10-15% tip for taxi drivers
– Rounding up payment for taxi rides

UK Hospitality’s Kate Nicholls notes: “Tipping is left in the hands of the customer to tip what they feel is acceptable.”