Research found many businesses that add a discretionary service charge to customers’ bills were keeping part or all of that cash, instead of passing it to staff.
Anger after government axes bill to let staff keep tips
The government has axed plans to bring in legislation that would ensure restaurants and other hospitality workers keep their tips.
The bill, which was endorsed as recently as September, was not included in the Queen’s Speech.
Hitting out at the the news, Unite union general secretary Sharon Graham said: “Every year this government promises action to ensure fair tipping, and then does precisely nothing to deliver on that promise.”
TUC head Frances O’Grady said the lack of the Employment Bill in Tuesday’s Queen’s Speech meant “vital rights that ministers had promised – like default flexible working, fair tips and protection from pregnancy discrimination – risk being ditched for good”.
A statement said the government had a “strong track record in supporting workers” as well as “protecting and enhancing their rights”,
“Our ambitious legislative programme includes a comprehensive set of bills which enable us to deliver on priorities like growing the economy, which will in turn help address rising living costs and get people into good jobs,” it added.
In September business minister Paul Scully had said the move would help about two million waiting staff and other hospitality workers.
At the time he explained: “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.”
The plan to legislate on the issue came about several high-profile firms were found to be deducting money from card payments intended for waiting and kitchen staff.
