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The new tipping law will see around £200 million put back into the pockets of hospitality workers every year.

Millions of people working in hospitality will now be able to take home more cash from work - after a new law banning employees from withholding tips received Royal Assent. The Employment (Allocation of Tips) Act 2023 received Royal Assent this week and makes it unlawful for businesses to hold back service charges from their employees.

The bill will see a new statutory Code of Practice developed in order to provide businesses with advice on how tips should be distributed among staff. Workers will also be given the right to request more information relating to their employer’s tipping record, which will help them to bring forward a credible claim to an employment tribunal.

The change, which is expected to come into force in 2024, will see around £200 million put back into the pockets of workers every year. The Government will confirm an exact date for when the measures become law later this year, following a consultation and secondary legislation.

Tipping bill: Millions of workers to take more cash home after withholding tips made illegal under new law